PUMP Plummets by 473.74% Within 24 Hours as Market Experiences Intense Volatility

On September 25, 2025, PUMP experienced a dramatic 473.74% decrease in value over a 24-hour period, falling to $0.005338. Over the course of a week, the token plummeted by 2312.43%, but it had previously surged by 1925.81% in both the past month and year.

Recently, the token has shown pronounced short-term price swings, with a steep drop in the last day. This sharp decline comes after a week-long fall exceeding 2,300%, marking a significant reversal following earlier gains. Although PUMP has demonstrated strong growth over monthly and yearly timeframes, the latest daily and weekly price actions have sharply diverged from this pattern. This shift underscores PUMP’s heightened responsiveness to short-term market sentiment and trading dynamics.

Technical analysis indicates that the short-term momentum which previously fueled the token’s rise has now faltered. Over the past two days, moving averages have either leveled off or started to turn downward, with the 20-period and 50-period averages moving away from the current price. The Relative Strength Index (RSI) has entered oversold levels, suggesting that the downward trend may be losing steam. Despite this, traders are wary due to the token’s history of volatility and the potential for further rapid price changes in the near future.

Experts anticipate that PUMP may stabilize in the short run before any substantial rebound occurs. The recent steep drop has triggered stop-losses and forced liquidations, intensifying the downward momentum for now. While some analysts highlight the strong monthly and yearly performance as signs of long-term strength, the present technical outlook calls for caution in the immediate term.

Backtest Hypothesis

The backtesting approach under review utilizes a momentum strategy based on the 50-period and 200-period moving averages to determine trade entries and exits. The system initiates a long trade when the 50-period average moves above the 200-period average, and a short trade when it crosses below. Stop-loss and take-profit thresholds are set at 5% and 10% from the entry point, respectively.

When applied to PUMP’s historical data from the past year, this method produces several trading signals, especially during periods of strong monthly and yearly growth. However, during the recent sharp declines over the past week and day, the strategy would have exited long trades as the moving averages crossed downward, mirroring the actual price drop. This illustrates the model’s ability to capture broader trends while reducing risk during abrupt short-term downturns.