PUMP adjusts after historical peak: Is it accumulating for a new surge or preparing to plummet?

Pump.fun (PUMP) unexpectedly reversed after just setting a historical peak at 0.0090 USD. In a short-term period, this altcoin lost nearly 30% of its value and clearly showed signs of weakness.

Technical signals are currently warning that PUMP may continue to face downward pressure in the short-term.

###Token Pump.Fun can enter a downtrend

The MACD indicator is giving a strong warning signal for Pump.fun. The MACD line has just crossed below the signal line, forming a bearish cross pattern – a sign that often precedes a weakening of the upward momentum and could end a nearly month-long streak of consecutive growth.

This development means that the price of PUMP is at risk of deeper corrections. For traders, the pressure to take profits may increase, thereby adding more pressure to the upward momentum of the token. If a formal crossover occurs, bearish sentiment may quickly spread, forcing investors to prepare for strong fluctuations in the short-term.

The daily MACD indicator of PUMP/USDT | Source: TradingViewIn addition, the RSI index also reinforces the technical picture. After slipping from the overbought zone – often signaling a saturation state and usually preceding a corrective move – the RSI indicates that the upward momentum of PUMP is weakening, making the altcoin susceptible to selling pressure. However, the fact that the RSI remains above the neutral threshold of 50.0 helps maintain the overall upward trend, serving as a stabilizing support. If buying pressure appears in time to protect the current price area, the recovery opportunity for PUMP is not completely closed yet.

The daily RSI indicator of PUMP/USDT | Source: TradingView###PUMP price needs support

At the moment, PUMP is trading around 0.0069 USD, which means it has lost nearly 30% of its value compared to the peak of 0.0090 USD. Technical signals indicate that this token still has room for adjustment before finding a clearer recovery opportunity.

PUMP/USDT Daily Chart | Source: TradingViewThe next key support level is at 0.0062 USD – an area that could act as a temporary "pressure release valve" if selling pressure continues to increase. Maintaining this level is considered crucial to avoid a deeper decline.

On the contrary, if PUMP can turn 0.0074 USD into a solid support zone, the negative scenario will be invalidated. At that point, this token will have the opportunity to regain momentum and aim for the peak of 0.0090 USD, as long as it receives strong consensus from market demand.

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