PUMP Price Prediction: It has fallen by 40% since its launch, is there hope for a rebound?

The recently launched Pumpfun (PUMP) has seen a significant fall in price, having dropped below its initial coin offering (ICO) price. Since its issuance, PUMP has fallen by more than 40% and continues to decline.

Reasons for the PUMP price fall According to CoinMarketCap data, the price of the PUMP token has retraced over 40% since its launch and continues to fall. Currently, the trading price of PUMP is $0.00368, which is a further drop of 15% compared to the previous phase. Despite this, the participation of traders and investors is increasing.

Data shows that the 24-hour trading volume of PUMP has increased by 32% compared to the previous day, reaching $721 million. This increase in trading volume combined with a price fall indicates that the market is experiencing a strong bearish trend, which may continue to decline in the coming days.

Large holders' sell-off drives price fall Recently, a report shared by a cryptocurrency expert pointed out that the main reason for the fall in PUMP prices is profit taking. According to the expert's analysis, due to concentrated selling by large holders, the price of PUMP has already fallen below its private placement price $0.004.

An investor purchased 25 billion PUMP for 100 million USD, of which 17 billion PUMP has already been sold. Another holder bought 12.5 billion PUMP and has sold all positions for 14.31 million USD.

These large-scale sell-offs may be the main driving force behind the continuous fall in PUMP prices.

PUMP token outflow and potential accumulation signals Despite the price fall, some investors and long-term holders are starting to seize the opportunity to accumulate in large quantities. According to CoinGlass data, global exchanges recorded $2.16 million in PUMP token outflows in the past 24 hours.

In the current market sentiment, the outflow of tokens suggests potential accumulation behavior, which may slow down selling pressure and help limit further price falls. However, trader sentiment remains unchanged, still bearish on the market.

The data shows that the Long/Short ratio of PUMP is 0.88, indicating that investor sentiment is quite bearish. Currently, only 47% of traders are holding long positions, while 53% are holding short positions. Combining this data, it can be seen that short sellers dominate this asset. However, the potential accumulation of PUMP may slow down the pace of price decline.

PUMP Price Trend and Technical Analysis The current key question is whether the PUMP will rebound or continue to fall.

According to technical analysis by AMBCrypto, PUMP is currently in a downtrend but seems to be forming a bullish price pattern. From the recent price movement, the four-hour chart shows that PUMP is forming a bullish falling wedge pattern, with the price near the lower boundary, indicating that upward momentum may occur.

However, the trend may only change if PUMP breaks through this bullish pattern and closes above $0.0042.

In addition, the relative strength index (RSI) of PUMP is 32, indicating that the token has entered the oversold zone, which may lead to a price rebound or upward momentum.

Conclusion The market sentiment for PUMP is currently dominated by bears, but investors are still paying attention to its long-term potential. Despite facing downward price pressure in the short term, accumulation behavior and changes in technical patterns may provide some support. The next few days will be a critical period, as the ability to break through the current downtrend will determine whether PUMP can seize a rebound opportunity.