The price of the PUMP token has demonstrated a significant decline, dropping below an important support level. This article examines the reasons behind this fall and the potential scenarios for the asset's future behavior.
Price Drop and Key Support Levels
Pump.fun (PUMP) dropped below a key support at $0.004035, which had previously served as a base for multiple sessions. On July 22, the asset failed to hold above this level and attempted a brief recovery, but the rejection confirmed a bearish setup.
Current Market Situation and Predictions
As of press time, PUMP was trading at $0.00371, marking a decline of nearly 15% over the last 24 hours and more than 34% in the past week. Analysts suggest that the next target could be the $0.0024 level, which sits roughly 40% below current price levels and aligns with a previous demand area.
Events Surrounding ICO and Token Losses
On July 13, Pump.fun held a $500 million ICO that sold out in just 12 minutes. However, some users could not complete their purchases. Kraken confirmed it will airdrop PUMP tokens to affected accounts. Separately, one user accidentally burned 10 million tokens worth around $75,000 shortly after launch due to a wallet operation.
The PUMP market is experiencing pressure from bearish traders, and the asset's further behavior remains uncertain. Traders are expected to monitor upcoming changes, including the Kraken airdrop that could impact liquidity.
