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PUMP token experiences a sharp 23% decline after a brief surge, triggering concerns among investors and traders.
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Top wallets have liquidated over $17 million in profits, signaling significant sell pressure in the market.
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According to COINOTAG sources, a break below $0.005294 could lead to further substantial downside for PUMP.
PUMP token plunges 23% amid heavy profit-taking by top wallets, risking deeper declines if key support at $0.005294 fails to hold.
Top Wallets Cash Out Over $17 Million as PUMP Faces Intense Selling Pressure
PUMP’s recent price action highlights a rapid shift from bullish momentum to a pronounced correction. After reaching a peak of $0.006899 on July 16, the token quickly retraced to $0.005294, reflecting a 23.2% drop within hours. This sharp decline is primarily driven by top wallets aggressively realizing profits, with on-chain data showing that the top 10 holders have collectively cashed out more than $17 million.
Wallet CxSZ84Ui alone booked $1.79 million in gains, while multiple other wallets followed suit with substantial liquidations exceeding $1.5 million each. The fact that over 95% of these leading wallets have exited their initial positions underscores a decisive shift in market sentiment. This mass exodus from key holders is a critical factor contributing to the current downward pressure on PUMP’s price.
PUMP price and aggressive profit booking: Nansen
Additionally, smart money wallets—those identified for consistently high win rates—have reduced their holdings by 34.5%, now holding 3.17 billion tokens compared to over 4.3 billion earlier. Whale wallets have also decreased their balances by 3.63%, indicating that large-scale investors are actively selling rather than holding or accumulating. This coordinated sell-off has overwhelmed any buyback efforts, with repurchase fees unable to counterbalance the volume of tokens being offloaded.
PUMP holders and their 24-hour moves: Nansen
Conversely, the unrealized profit leaderboard reveals a potential risk zone, with nearly $10 million still held in paper gains. Wallet 9mKy1K8S, for example, maintains $1.38 million in unrealized profits with a full position intact. These holders may act as a future source of selling pressure should the price weaken further, potentially exacerbating the downward trend.
Unrealized profits signal caution: Nansen
Bearish Supertrend Indicator Aligns with Whale Sell-Off
The technical outlook for PUMP has turned increasingly bearish, with the Supertrend indicator on the 1-hour chart flipping to red. This shift signals a short-term momentum reversal, corroborating the observed behavior of large holders exiting their positions. The convergence of technical and on-chain signals strengthens the case for a continued downtrend in the near term.
PUMP Supertrend indicator: TradingView
The Supertrend is a volatility-adjusted trend-following tool that changes color based on price movements relative to a calculated range. A red Supertrend indicates bearish momentum, suggesting that sellers currently dominate the market. When combined with the active selling from whales, this technical signal points to heightened downside risk for PUMP.
Critical Support Levels Under Threat, Increasing Risk of Further Declines
From a price action perspective, PUMP is precariously close to breaching a key support level at $0.005294, identified through Fibonacci retracement analysis. The token has already failed to hold the 0.382 ($0.00590) and 0.236 ($0.00567) retracement levels, which previously acted as support during the recent rally.
If the $0.005294 level breaks decisively, it could trigger a cascade of sell orders, especially given the significant unrealized profits still held by many traders. This scenario raises the probability of a deeper correction, potentially pushing prices lower until new support is established.
PUMP price analysis: TradingView
On the upside, bulls need to reclaim the 0.618 Fibonacci retracement level at $0.00628 to stabilize the market and possibly attract renewed buying interest. A successful break above this level could pave the way for a retest of the recent high near $0.00689, potentially reversing the current bearish trend.
Conclusion
The PUMP token is currently navigating a critical juncture marked by aggressive profit-taking from top holders and bearish technical signals. The combination of heavy selling by smart money and a bearish Supertrend indicator suggests that further downside risk remains elevated unless key support levels are reclaimed. Traders and investors should closely monitor the $0.005294 support threshold and the $0.00628 resistance level for signs of market stabilization or renewed momentum. Staying informed on on-chain activity and technical indicators will be essential for making prudent decisions in this volatile environment.
