Pump.fun Token Plummets 21% in 24 Hours Despite $600 Million ICO

The Pump.fun token, which had an impressive start by raising over $600 million in minutes and experiencing a 20% jump following a $30 million buyback, has since faced a significant downturn. The token is now trading 20% below its ICO price, with nearly 60% of early buyers already selling their holdings. This decline is notable despite the token being listed on major exchanges such as OKX, BitMEX, Kraken, and KuCoin.

The token's price has plummeted to approximately $0.00406, marking a 21% drop in just 24 hours. This steep decline occurred despite the token raising $448.5 million from over 10,000 participants during its public sale. The market sentiment remains bearish as bulls failed to defend key support zones, leading to a continued sell-off.

BitMEX data indicates that nearly 60% of early investors have sold their tokens, with only 3% increasing their positions. A failed $2.3 million buyback by Pump.fun further intensified the bearish momentum. Previous resistance levels are now forming around the $0.0052 mark, and selling pressure continues to dominate the token’s price action. Open interest in PUMP perpetual contracts has dropped by over 16%, now standing at $629 million, suggesting a waning of speculative interest and fading market enthusiasm just days after its initial public offering.

Prominent trader Crypto Bully believes that more downside is likely unless a strong catalyst appears. Although oversold signals have emerged on Stochastic RSI, traders remain cautious. A chart shared by CryptoA4 hinted at a potential bottom, but conviction in that call is limited given the scale of recent outflows. Another crypto analyst, Gem Hunter, called PUMP’s collapse predictable, citing key red flags such as the founder's past involvement in presales scams, the lack of an airdrop despite extracting $1.5 billion from the community, and the token's lack of real value to Pump.fun. He noted that the chart now mirrors a typical Pump.fun dump, with failed buybacks and relentless sell pressure, suggesting there’s no bottom in sight.

With a rise in bear sentiment, analysts warn that the token could slide further in the short term, highlighting the risks of post-ICO hype cycles in the current market. The lack of utility, rewards, or an airdrop has led many to question the token's real value, further eroding confidence among traders.