PUMP Token Plummets 63% Post-ICO as Bears Dominate Market: Chart Analysis
Introduction: A Staggering Decline for PUMP Token
The crypto market has seen its fair share of volatile assets, but few have experienced as dramatic a fall as Pump.fun’s PUMP token. Following a highly anticipated $600 million ICO, the meme coin launchpad’s native token has plummeted 63% in just two weeks, trading at $0.0024—far below its initial offering price.
Despite Pump.fun’s impressive business metrics—including 12 million tokens deployed and $775 million in revenue—the token’s performance has been dismal. A combination of broken promises, regulatory concerns, and intense sell pressure has left investors fleeing. Meanwhile, competitor LetsBonk is gaining traction, further eroding Pump.fun’s market dominance.
This article dives into the factors behind PUMP’s collapse, analyzes key technical indicators, and explores whether a recovery is possible—or if this marks the end of Pump.fun’s hype cycle.
Pump.fun’s Broken Promises: The Airdrop That Never Came
One of the biggest catalysts behind PUMP’s decline was the abrupt cancellation of an expected airdrop. During a July 24 livestream, Pump.fun co-founder Alon Cohen confirmed that the airdrop would not happen in the immediate future, contradicting earlier hints from the team.
For context:
- Pump.fun is a Solana-based platform allowing users to create meme coins instantly.
- Before PUMP’s ICO (which sold out in 12 seconds), speculation swirled that early adopters would receive an airdrop.
- The company initially suggested an airdrop was "coming soon," fueling investor expectations.
The sudden reversal triggered panic selling, with many participants dumping their tokens immediately. According to BitMEX, nearly 60% of presale buyers have already exited, exacerbating downward pressure.
Regulatory Woes Add to the Pressure
Making matters worse, Pump.fun faces a $5.5 billion class-action lawsuit alleging it operates an unlicensed casino scheme via meme coin trading. Solana Labs and the Solana Foundation are also named as co-defendants, adding another layer of uncertainty for investors.
Competition Heats Up: LetsBonk Gains Market Share
While Pump.fun struggles, rival platform LetsBonk has been quietly capturing more of the meme coin trading market. Key observations:
- Pump.fun’s daily active users have dropped by 70% from their peak.
- Revenue growth has slowed significantly in 2025 compared to previous highs.
- Prediction markets like Myriad (developed by Decrypt’s parent company) now give PUMP only a 3.2% chance of surpassing Bonk in market cap—down from 18% just a week ago.
This shift suggests that traders are migrating to alternatives, further weakening PUMP’s position.
PUMP Price Analysis: A Technical Breakdown
Current Price Action & Key Metrics
As of now:
- Price: $0.0024
- 24h Change: -15.28%
- 7-Day Change: -41.88%
- Post-ICO Decline: -63% since July 16
PUMP is currently the worst-performing asset in the top 100 cryptocurrencies, with no signs of bullish momentum.
Bearish Indicators Dominate the Charts
Since PUMP is a new token, traditional moving averages (50-day/200-day) aren’t applicable yet. However, short-term indicators paint a bleak picture:
Relative Strength Index (RSI): 28 (Deeply Oversold)
- Typically, an RSI below 30 signals extreme selling pressure.
- No bullish divergence suggests further downside risk before any potential bounce.
Average Directional Index (ADX): 41 (Strong Downtrend Confirmed)
- Readings above 25 indicate a strong trend; above 40 suggest extreme momentum.
- This confirms that PUMP isn’t just correcting—it’s in a full-blown bearish phase with room to fall further.
Squeeze Momentum Indicator: Volatility Already Released
- The indicator is "off" on the 4-hour chart, meaning most post-ICO volatility has played out.
- Without bullish momentum building, sideways-to-down movement is likely next.
Descending Channel Pattern Hints at More Losses
- Until PUMP breaks above $0.0027 (upper channel resistance), the downtrend remains intact.
- Immediate support sits at $0.00239, with stronger psychological support at $0.00200.
Key Levels to Watch
| Level | Significance |
|--------|--------------|
| $0.00239 | Immediate support (stop-loss zone) |
| $0.00200 | Strong psychological support |
| $0.0028 | First resistance (pivot point) |
| $0.00340 | Major breakout level |
Conclusion: What Comes Next for PUMP?
PUMP’s dramatic decline highlights several critical lessons for crypto investors:
- Hype ≠ Sustainability: Even successful platforms can see their tokens fail if fundamentals weaken or promises go unfulfilled.
- Airdrop Speculation is Risky: Many investors bought into PUMP expecting free tokens—when that didn’t happen, panic ensued.
- Competition is Fierce: LetsBonk’s rise shows how quickly market dynamics can shift in the meme coin space.
What Should Traders Watch Next?
- Any updates on Pump.fun’s legal battles or potential exchange listings could impact sentiment temporarily.
- If Bitcoin and major altcoins regain bullish momentum, some speculative interest may return to PUMP—but technicals must improve first.
- Continued user migration to LetsBonk or other competitors could further diminish Pump.fun's relevance long-term.
For now, charts suggest that sellers remain firmly in control—and until key resistance levels break, any recovery attempts will likely be short-lived.