- Whale Exit: Major holder sold $6.3 million PUMP, signaling potential further downside.
- Buybacks: Team continues daily token purchases, totaling $12.7 million in December so far.
- Technicals: Oversold indicators and key support at $0.0025 suggest possible rebound if buyers step in.
Pump.fun — PUMP, recently took a hit, sliding deeper into a downtrend after failing to maintain momentum. The token peaked at $0.0048 last month but has since traded in a descending channel. At press time, PUMP changed hands at $0.002754, down more than 30% over the past month. Selling pressure intensified as large holders exited positions, raising questions about whether PUMP has reached a key turning point in the market.
Whale Exits Amplify Selling Pressure
On-chain data revealed that a major whale closed positions at a significant loss. Two wallets controlled by the same whale sold a combined $6.3 million worth of PUMP. One wallet deposited 1.17 billion tokens, valued at $3.21 million, while the other sold 1.129 billion tokens worth $3.11 million. The whale had accumulated PUMP for over three months.
By realizing losses exceeding $5 million, roughly 50% of the initial investment, the whale signaled deteriorating confidence. Historically, such large exits at a loss can indicate further downside risk. Exchange flows reflected similar trends. CoinGlass data showed a sharp positive shift in Pump.fun Spot Netflow, reaching around $509,000 from a previous negative of $1.28 million.
Positive netflows often indicate rising exchange inflows, increasing near-term selling pressure when demand remains weak. Buyers faced a significant stress test as internal support struggled to absorb the selling. Despite ongoing challenges, the Pump.fun team continued token buybacks throughout December.
Oversold Signals and Potential Recovery
Momentum indicators suggest the token is oversold. PUMP’s Stochastic RSI dropped to 21, a level often seen during strong seller control. While oversold readings can sometimes precede rebounds, they do not guarantee an immediate reversal. If selling continues, the token risks losing the $0.0025 support zone, which could push prices lower. Buyers need to reclaim EMA20 near $0.0029 to challenge the bearish trend.
A successful move above EMA20 could open a path toward EMA50, around $0.0034, offering potential upside. Traders are watching closely for any signs that buy-side support can stabilize the market. Whale exits, selling pressure, and oversold conditions create a delicate balance. Whether PUMP rebounds or continues lower depends on whether buyers can step in and counteract the heavy selling.
PUMP’s recent decline highlights the impact of large holders on token price. Whale capitulation, combined with technical weakness, has shaped current market sentiment. Token buybacks show some commitment from the team but may not be enough to reverse trends alone. Investors should monitor support and resistance levels closely while keeping an eye on any return of smart money.
