PUMP remains in a steady downtrend, testing lower channel supports as bearish control dominates short-term sentiment. The $0.0025 level emerges as a key technical support that could trigger a temporary rebound within the current structure. Despite the decline, strong trading volume and TVL show that investor participation remains active but cautious.
PUMP has reached a serious trading stage, the price movement remains to move down inside a specific bearish channel. The market observers are now keenly observing the $0.0025 level that may be a point of major short term lift or market rest.
Persistent Downtrend and Technical Boundaries
The PUMP/USDT 4-hour chart reveals a well-defined descending channel pattern, displaying multiple lower highs and lower lows. Each upward attempt has met consistent selling pressure near resistance, reinforcing the dominance of bearish sentiment. The pattern suggests a gradual yet persistent unwinding phase as liquidity shifts toward lower ranges.
Repeated rejections along the upper boundary confirm the presence of active sellers defending the structure. Price activity around the channel’s midpoint has served as a temporary equilibrium area, but each stabilization phase has been followed by renewed declines. This ongoing reaction pattern shows the market’s hesitancy to establish a sustained recovery.
According to a recent chart shared by analyst Ali (@ali_charts), $0.0025 represents a key technical level where a short-term bounce may occur. Positioned near the lower boundary of the channel, this level aligns with previous points of exhaustion, where temporary rebounds have historically emerged before continuation phases.
Weak Momentum and Supply-Side Considerations
As of writing, market data shows PUMP trading near $0.00374, reflecting a 7.9% decline over 24 hours. The token’s fully diluted valuation of $3.75 billion versus a market cap of $1.32 billion reveals a wide gap, pointing to future supply expansion potential. With only about a third of the total supply of nearly one trillion tokens in circulation, the market remains exposed to further dilution risk once additional tokens unlock.
At the same time, trading activity is far from bad: 24-hour volume above $352 million. While such liquidity adds to short-term stability, it also favors high-frequency speculative trading. The total value locked (TVL) around $248 million indicates that participants are still engaged in staking and liquidity protocols, helping maintain structural depth.
The treasury holding of approximately 216.8 million tokens represents both a strategic asset and a latent source of pressure if released into circulation. The market continues to evaluate how these reserves will be managed amid broader bearish trends.
Key Levels and Short-Term Outlook
Technically, the structure remains fragile but organized. Fibonacci retracement levels show recurring failures to recover the $0.618 level, which means that the upward movements are still corrective and not reversing. In case the selling pressure relaxes at the level of $0.0025, the market may begin to rebound temporarily to the level of $0.0040, which is the mid-range resistance of the channel.
Nevertheless, any inability to create the necessary purchasing impetus at this level may prolong the losses to even further lows. The short term sentiment is still defensive and traders are waiting to see an accumulation or decreasing sell volume before they begin to think about the wider possibility of recovery. In the meantime, the $0.0025 level can be considered a key indicator of the market environment, which will either stabilize PUMP or it will be gradually pulled into a further decline.