Pump.fun slid deeper into a downtrend after failing to sustain momentum from its recent peak.

Since reaching $0.0048 a month ago, Pump.fun [PUMP] traded inside a descending channel and touched a local low near $0.0025.

At press time, PUMP traded at $0.002754, down 3.85% daily and 30.4% monthly, reflecting sustained selling pressure. That weakness coincided with visible capitulation from large holders.

Whale exits at a loss

On-chain data showed a major whale closing positions at a steep loss. According to Arkham data, two wallets belonging to the same whale dumped $6.3 million worth of PUMP. 

One wallet deposited 1.17 billion PUMP worth $3.21 million, while another sold 1.129 billion PUMP worth $3.11 million. The whale had accumulated PUMP for over three months, beginning near the all-time high.

As prices declined, the entity continued buying each dip before fully exiting during the latest drawdown. With PUMP down over 50% from its highs, the whale realized losses exceeding $5 million, or roughly 50%.

Historically, whales selling at a loss often reflected deteriorating confidence and expectations of further downside.

That selling pressure also appeared on exchanges.

According to CoinGlass, Pump.fun Spot Netflow turned positive after a sharp shift in flows. At press time, Spot Netflow stood near $509,000, up from -$1.28 million the previous day.

Positive Spot Netflow typically signaled rising exchange inflows, increasing near-term selling risk when demand remained weak. This left traders focused on whether internal buy-side support could absorb the pressure.

Buybacks face a stress test

While whales have capitulated amid a prolonged bearish market, Pump.fun has continued to accumulate PUMP through token buybacks.

In fact, the team has bought tokens every single day in December so far. Over the past 24 hours, for example, the team bought 436.9 million PUMP worth $1.2 million.

In total, December buybacks reached roughly $12.7 million. That activity helped absorb part of the sell-side flow but failed to reverse the broader trend.

Even so, price action suggested buybacks alone remained insufficient to drive a sustained recovery.

Oversold signals, but risks remain

Momentum indicators reflected persistent downside pressure.

PUMP’s Stochastic RSI dropped to 21, placing the token in oversold territory, according to TradingView. Oversold readings often reflected strong seller control rather than immediate reversal signals.

If selling continued, PUMP risked losing the $0.0025 support zone. To weaken the bearish structure, buyers would need to reclaim EMA20 near $0.0029.

A successful reclaim could open a move toward EMA50 around $0.0034.

Final Thoughts

• Pump.fun’s recent price action reflected a market caught between whale exits and persistent internal buying.
• Whether buybacks can offset broader risk sentiment may shape PUMP’s next phase as traders reassess conviction.

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Author: Gladys Makena