What Just Happened
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PUMP token is now trading around $0.00406, approximately 21% below its ICO price—a sharp decline from its listing levels.
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Over 59% of early investors have exited their positions, signaling a mass departure from the asset.
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A previously announced $2.3 million buyback program failed to stabilize the price, reinforcing downside bias.
On-Chain & Derivatives Context
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Open interest down about 16% to $629 million in a day—clearly showing bearish sentiment.
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Notable stochastic RSI oversold signals suggest a potential bounce, but cautious trader sentiment prevails.
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Comparison with similar ICO drops shows that pump-and-dump dynamics often precede capitulation bottoms. For reference, academic models highlight that many such tokens retrace 30%–75% after pump phases.
Technical Levels & Market Flow
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Immediate support sits at the ICO floor of $0.00400. Breaking this could trigger additional sell pressure.
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Resistance range lies near the previous listing high of $0.00522–$0.00540.
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Chart signal: A double-top pattern paired with divergence on RSI warns of potential further retracements.
Strategy for Risk-Aware Traders
| Scenario | Entry Zone | Stop-Loss | Target Zone |
|---|---|---|---|
| Bounce off ICO floor | $0.00400–$0.00410 | Below $0.00390 | $0.00440 → $0.00480 |
| Rebound breakout | $0.00440–$0.00450 | Just below support | $0.00520 → $0.00540 |
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Additionally, monitor derivatives volume—if open interest stabilizes or reverses, it may confirm a recovery.
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Real Internal Links to TheCoinVibe.com
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Check out Understanding Stochastic RSI for Altcoin Timing for clear signals on entries
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Learn how to trade double-top patterns through our article Double‑Top Strategy: When to Exit Altcoins
Final Thoughts
Pump.fun’s PUMP token flash-crashed below ICO price after investor dump-off and a failed buyback left confidence shaken. Immediate risk lies beneath the $0.004 ICO level, but oversold conditions open the possibility of a bounce. If you’re trading this setup, use tight stops and scale entries near support or on confirmed rebound volume.
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This is not financial advice. Always conduct your own research and adapt to your risk profile.