Pump.fun loses KEY support as $5M liquidations raise PUMP’s downside risks

Pump.fun [PUMP] breached the $0.006 support and was trading around $0.0055, down 7.2% on the daily charts, at press time. Over the same period, the altcoin’s trading volume dropped 20% to $427 million, reflecting a slowdown in market activity.

PUMP’s long liquidations exceed $5M

Pump.fun‘s price drop pushed many bulls out of the market. CoinGlass data showed that $5.09 million worth of long positions were liquidated.

Usually, higher long liquidations add selling pressure to an already falling market, causing further price declines. This can trigger a cascade of liquidations.

At the same time, increased liquidation risk can cause a shift in sentiment, forcing traders to panic-close their positions.

In fact, this market behavior was widely observed over the past 24 hours. PUMP’s futures recorded $445 million in outflows compared to $418 million in inflows.

As a result, Futures Netflow dropped 98% to -$27 million. The negative Netflow suggested that more capital flowed out of the futures market than entered it, potentially reflecting traders closing positions to cash out or avoid further losses.

Spot sellers are not left behind

On the Spot side, selling pressure was even more intense. According to Coinalyze data, the altcoin recorded 11.4 billion in Spot Sell Volume compared to 10.8 billion in Buy Volume.

As a result, the Buy Sell Delta fell to 600 million, reflecting strong spot selling pressure. Exchange activity is also recorded for this selling activity, especially over a 12-hour timeframe. 

Over this period, PUMP saw $11.47 million in Spot inflows compared to $9.8 million in outflows. Moreover, Spot Netflow rose 148% to $1.6 million, a significant reversal from $1.6 the previous day. 

Historically, intense selling pressure has preceded further market weakness, leading to lower prices.

Can PUMP withstand the selling pressure?

Structurally, PUMP has been weakened by intense market pressure. Notably, the MACD formed a bearish crossover and dropped to 0.00005 as of writing.

The crossover confirmed increasing selling pressure and strengthening downside momentum as buyers lost control.

Likewise, the Stochastic Momentum Index (SMI) dropped to 22, reinforcing the bearish outlook.

These indicators point to a strengthening downtrend and a potential continuation. Thus, if the bearish pressure seen on the daily charts persists, we could see PUMP drop below $0.005 toward $0.0046.

However, if reduced leverage eases market volatility, the altcoin could hold above $0.005 and potentially reclaim $0.006.

Final summary

• Pump.fun declined 7%, breached the $0.006 support, and fell to a low of $0.0052 amid intense selling pressure
• PUMP’s price drop triggered over $5 million in liquidations on the long side.