PUMP plummet 23% in just a few hours as selling pressure increases

The native Token of Pump.fun – PUMP – is showing signs of exhaustion after a spectacular breakout. Along with the wave of memecoin on Solana and renewed attention from the market, PUMP surged to a local peak of 0.006899 USD on July 16.

However, just a few hours later, the price plummeted to a low of 0.005294 USD, equivalent to a decrease of 23.2%. This sharp correction occurred against the backdrop of many holders taking profits early and on-chain signals indicating that the downward pressure has not yet stopped – unless PUMP regains important support levels.

Whales start to "dump" as realized profits surge

The latest on-chain data records a massive wave of profit-taking from large wallets. According to the PnL data (Profit/Loss), the top 10 wallets alone have realized over 17 million USD in profit. Statistics from the leaderboard show that the majority of traders have exited all positions.

The wallet CxSZ84Ui earned 1.79 million USD, while 8 other wallets also realized profits of 1.5 million USD or more. Notably, over 95% of the top wallets are currently holding 0% of the PUMP they purchased – indicating that they have sold all of their coins.

PUMP price and strong profit-taking activities | Source: NansenAt the same time, the number of PUMP tokens held by the "smart money" group – wallets tagged with a high win rate – has decreased by 34.5%, from over 4.3 billion to only 3.17 billion tokens. The assets of the whale wallet group also decreased by 3.63%, indicating that the "big players" are not just passively observing but are actively selling.

This means that simple PUMP buybacks are not enough to balance the prolonged selling pressure. The amount of fees spent to buy back the tokens is being neutralized – even overshadowed – by large-scale profit-taking activities from whales dumping their holdings.

The 24h volatility of wallets holding PUMP | Source: NansenOn the contrary, the unrealized profit statistics show a dangerous scenario: many wallets are still "holding" nearly 10 million USD in estimated profits. For example, the wallet 9mKy1K8S has an unrealized profit of over 1.38 million USD and still holds 100% of the amount of Token. This could become the next wave of selling if the price continues to drop.

Unrealized profit is a warning signal | Source: Nansen## Supertrend indicator turns red

The Supertrend indicator on the 1-hour chart has turned red – a sign that the short-term trend has become negative. This completely aligns with the profit-taking behavior of whales: after enjoying the upward momentum, they have started to pull back, dragging the price down.

The Supertrend indicator of PUMP | Source: TradingViewSupertrend is a trend-following momentum indicator that reacts to both price changes and volatility. When the price drops below a certain threshold, the indicator line changes color from green to red – signaling a trend reversal from bullish to bearish.

PUMP is at risk of breaking through the support zone

The price chart is depicting a clearer perspective. The analysis team has drawn Fibonacci retracement levels from the local peak of 0.00689 USD down to the bottom of 0.00529 USD. At the time of writing, the PUMP price is trading around the mark of 0.00531 USD – approaching the Fibonacci bottom of ( at the level of 0.0), signaling the risk of breaking the support zone is imminent.

Important support levels have been consecutively breached: the 0.382 ( 0.0059 USD ) level and the 0.236 ( 0.00567 USD ) level could not hold the price. If the PUMP continues to break through the 0.00529 USD level, the likelihood of a chain selling panic is very high – especially when there are still many wallets that are in profit but have not sold.

Analysis of PUMP price chart | Source: TradingViewThe negative scenario will only be invalidated if the buyers can push the price above the Fibo 0.618 level at 0.00628 USD – currently the strongest resistance zone. If it breaks above this zone, PUMP may attract buying power back and retest the peak level of 0.00689 USD.

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