Momentum Tension for PUMP: Will It Break Towards $0.0030 or Face Another Decline?

Pump.fun (PUMP) has shown a modest gain recently but faces significant challenges ahead. An analysis of key indicators suggests that the PUMP market is under pressure, raising questions about its future performance and whether it will reach $0.0030 or decline further.

Key Takeaways

PUMP has experienced a minor gain of 3.2% over the past day.
The current trading price of PUMP is $0.002249, with a market cap of $792.57 million.
Technical indicators show that the market is in a bearish zone, indicating challenges for price recovery.
Support is noted at $0.002238, while nearby resistance sits at $0.002260.

Momentum Tension for PUMP: Will It Break Towards $0.0030 or Face Another Decline?

Current Status of PUMP

Pump.fun (PUMP) has made a slight gain of 3.2%, a boost of around 1.45%. In the early trading hours, PUMP saw a low of $0.002127. With bullish momentum, the price tested and surpassed various resistance levels ranging from $0.002137 to $0.002491, eventually reaching a high of $0.002501.

Presently, PUMP is priced at $0.002249, with a market capitalization of approximately $792.57 million. Additionally, there has been a significant increase in trading volume by over 73.06%, bringing it to $236.72 million. As reported by Coinglass, the market encountered a liquidation event that involved $2.63 million worth of PUMP.

Pressure on PUMP: Is Further Decline Expected?

Both the Moving Average Convergence Divergence (MACD) line and its signal line are positioned below the zero line, indicating that the PUMP market is currently in a bearish phase. The downward momentum appears to be firm, yet an upward movement in these lines may suggest a possible early reversal.

PUMP chart (Source: TradingView)

Moreover, the Chaikin Money Flow (CMF) indicator for PUMP stands at -0.08, which points to a moderate outflow of capital from the asset. The selling pressure is notably stronger than buying pressure, indicating a general state of weakness rather than a crisis situation.

Given the negative outlook, the price of PUMP may test the support level at $0.002238. Should the downward trend continue, further corrections could lead to the formation of a “death cross,” potentially pushing the price below $0.002227. Conversely, should bullish activity return, the price could rise to the immediate resistance level at $0.002260. If bullish pressures persist, this could lead to the development of a “golden cross,” resulting in prices exceeding $0.002271.

The daily Relative Strength Index (RSI) for PUMP currently sits at 47.02, which signifies a neutral to slightly bearish market sentiment. It is neither in an oversold nor overbought state, providing room for movement in either direction depending on market sentiment. The Bull-Bear Power (BBP) reading for PUMP is -0.000057, indicating a weak bearish control. This suggests that sellers possess a slight advantage over buyers, reflecting market indecision rather than a strong bearish trend.

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