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Here's why PUMP dropped to a low of $0.0050.
Following a weak jobs report, the broader crypto market was hit hard as investors rushed to reduce exposure. Amid this shift in sentiment, Pump.fun’s downside pressure intensified.
PUMP long liquidation exceeds $8MOften, prolonged squeezes strengthen downside momentum, leading to even more losses on the charts. Amid this rising liquidation risk, traders panicked and rushed to close their positions. The altcoin Futures saw $385 million in outflows compared to $374 million in inflows.
As a result, the Futures Netflow declined by 237% to -$10.7 million, a clear sign of aggressive selling. Historically, intense selling pressure combined with higher liquidation risks has weakened the market structure, leading to further declines. Interestingly, despite the price drop and intense pressure from the derivatives market, spot traders have held steady. On this side, buyers have turned stubborn, and the drop seems to have encouraged them to buy some more.
Coinalyze data showed that Spot Buy Volume has outpaced Spot Sell Volume for three consecutive days. On the 2nd of October, as the market dropped, Buy Volume rose to 25.5 billion compared to 24.6 billion in Sell Volume. Despite the pullback, the structure is yet to break down. At the time of writing, the MACD was on an upward trajectory.
The same case applies to the Relative Strength Index , which was deep in the bullish zone around 62. Taken together, the MACD and RSI suggest buyers are still in control of the market. If the spot-buying pressure holds, it could absorb downside pressure and help PUMP reclaim $0.006.
However, if sellers in the derivatives market continue at the current pace, PUMP will struggle to hold $0.005 and is likely to drop to $0.0046. PUMP faced rejection at $0.0061 and fell 9% to a low of $0.00509, driven by intense selling pressure. AMBCrypto was founded in 2018 with a mission to simplify and bring the latest blockchain and cryptocurrency news to our readers.
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