According to reports from AMBCrypto, Pump.fun's [PUMP] price dropped to $0.0054 at press time, representing a 9% decline from the previous level. The altcoin faced rejection at $0.0061 and fell to the current low amid broader crypto market weakness following a weak jobs report. Over the same timeframe, PUMP's trading volume climbed 55% to $605 million, indicating higher sell-side activity as investors rushed to reduce exposure.
As reported by AMBCrypto, the price drop triggered significant long liquidations with over $8.3 million in long positions liquidated, compared to $0.7 million in shorts. According to Lookonchain data, two major traders were liquidated who had opened long positions worth $3.61 million on 707.6 million PUMP tokens. The liquidation wave extended beyond these major traders, indicating widespread selling pressure across the market.
According to AMBCrypto, the futures market experienced significant selling pressure with $385 million in outflows compared to $374 million in inflows. The Futures Netflow declined by 237% to -$10.7 million, representing a clear sign of aggressive selling as traders panicked and rushed to close positions. This intense selling pressure has historically weakened market structure, leading to further declines in similar market conditions.
Despite the price decline and derivatives market pressure, spot traders have demonstrated resilience according to AMBCrypto. Coinalyze data showed that Spot Buy Volume outpaced Spot Sell Volume for three consecutive days, with buyers turning stubborn during the market drop. On October 2nd, as the market dropped, Buy Volume rose to 25.5 billion compared to 24.6 billion in Sell Volume, suggesting potential absorption of downside pressure and potential for market recovery.
As reported by AMBCrypto, PUMP has been making higher lows while respecting the rising support structure, with the MACD on an upward trajectory and the Relative Strength Index (RSI) in the bullish zone around 62. However, the current pullback has created a critical support level at $0.005, with potential for further decline to $0.0046 if derivatives market selling continues at current pace. The technical indicators suggest buyers remain in control, but sustained selling pressure could challenge the current support structure.
