The PUMP token has experienced a dramatic 33% price decline over the past week, bottoming out near $0.002. This significant drop has pushed the token to a five-month low, indicating a substantial loss of investor confidence.
The PUMP token’s decline accelerated during a broad cryptocurrency market selloff triggered by a major Bitcoin unwinding on December 18, 2025. Market data revealed more than $500 million in liquidations during early U.S. trading hours, with PUMP among the most severely affected tokens. These liquidations represent forced closures of leveraged positions when traders fail to meet margin requirements.
Between December 17-18, 2025, PUMP suffered an even steeper intra-move drop of over 14% in just 24 hours. Similar tokens including SPX6900 and Bittensor also recorded double-digit losses during this period. On-chain data shows aggressive capital withdrawals and deteriorating holder sentiment, patterns consistent with what traders typically describe as a capitulation phase—a rapid, panic-driven sell-off by investors with weaker conviction.
Fundamental weaknesses and technical PUMP analysis
As the native token of the Pump.fun platform, PUMP’s value is tied to the platform’s performance. Platform revenue reportedly collapsed to $27 million in November 2025, a contraction that market analysts have linked directly to weakened demand and negative sentiment surrounding the token.
From a technical perspective, PUMP currently sits in a critical support range between $0.001917 and $0.002123. If the price breaks below this band, technical analysts suggest downside targets near $0.0015-$0.0016 could quickly materialize. The combination of fundamental weakness and fragile technical structure significantly increases the probability of continued volatility and further price declines, particularly for leveraged positions.
For traders and portfolio managers, the risk profile appears asymmetrically tilted toward the downside while liquidity conditions remain stressed. Market participants should prepare for wider spreads and faster fills during stop-loss executions and portfolio rebalancing.
