Pump.fun (PUMP) continued to trend south as Bitcoin (BTC) hovered around the $77,000 mark over the weekend. Over the past 24 hours, memecoin launchpad utility token PUMP has lost 2.2% of its value, with a 6.2% decline over the past week.
Earlier this month, AMBCrypto reported that the major release of $18 million worth of PUMP tokens could see a short-term rebound, but would be accompanied by a long-term downtrend.
This short-term uptrend saw the token rise 12.6% in 5 days to $0.002. Since then, it has fallen by 13.4% in 9 days.
The recent rebound to $0.002 was part of a broader downtrend.
Over a one-day period, the trend was decidedly bearish. The downward impulse move in March and early April from $0.00219 to $0.00156 saw a retracement earlier this month. This retracement faced a decisive rejection from the $0.00205 level, which was also the 78.6% Fibonacci retracement level.
The DMI showed that there was no strong trend underway. However, as a lagging indicator it is likely to be erroneous. Based on price developments on the daily time frame, new local lows can be anticipated.
The $0.00156 and $0.00142 levels would be the next bearish price objectives. At the time of writing, the MACD and moving averages showed momentum starting to turn bearish.
Traders should keep an eye on the $0.0017 level, which provides long-term support and could once again curb the bearish momentum.
Here’s what’s needed to bullishly change PUMP’s short-term bias
The $0.00176 level had some significance over the past two weeks, but it was breached after much effort from sellers. Over a 2-hour time frame, technical indicators agreed that the momentum and downtrend were stronger.
To reverse the downtrend, PUMP needs to reclaim $0.00176 and $0.00182. This would signal a short-term trend change, which could turn into longer-term relief.
However, as it stands, the upper and lower timeframes appear to correspond with a downtrend in PUMP price. It remains likely that PUMP will see a further price drop of 9-18% in the coming weeks.
Final summary
- PUMP saw its price rebound to $0.002 after a major token unlock earlier in April, but that rally was sold off.
- The continued bearish pressure was likely to force the altcoin to reach new local lows below $0.00156.
