Pump.Fun recently took on a sudden U-turn after hitting an all-time high of $0.0090 (ATH). Altcoin is currently down almost 30% from its peak, indicating signs of debilitating.
The pump could face more downsides in the short term, as the indicator suggests a possible reversal.
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Pump.Fun tokens may be seeing a decline
Currently, moving average convergence divergence (MACD) is currently flashing attention for Pump.Fun. The indicators are on the danger of a bearish crossover, where signal lines overtake the indicator lines. Such a shift confirms the trend of weakening and marks the end of a bullish momentum for nearly a month.
This development shows that the price of the pump could be at risk of further drawdown. For traders, this means that profits can intensify and add pressure to the token.
When the crossover is complete, bearish feelings dominate and force investors to prepare for sophisticated volatility in the coming days.
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The relative strength index (RSI) provides additional insight into the current momentum of the pump. The indicators often signed saturation and slid out of the acquisition zone in excess, a level that precedes the correction. This decline suggests that the rally has lost its strength and has made Altcoin vulnerable to downward pressure.
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Still, the RSI remains above the neutral 50.0 mark, placing the pump in bullish territory. This can serve as a stabilizing factor and potentially slow the pace of decline. If buyers intervene to protect current levels, this indicator leaves room for recovery efforts from investors.
Pump price needs help
At the time of writing, the pump is trading at $0.0069, nearly 30% below the $0.0090 ATH. Given the current technical signal, the token may have another leg pointed down before attempting to rebound.
The next important support is $0.0062, and if the bearish momentum is strengthened, the pump can find temporary relief. Beyond this level is essential to prevent sharper reductions.
Alternatively, if the pump could flip $0.0074 to the support floor, it could disable the bearish paper. Achieving this will give you enough momentum to return to the $0.0090 ATH if investor support is still strong and if investor support is still strong.
