Pump.fun Faces $8.3M in Long Liquidations Amid Market Sell-Off
The cryptocurrency market took a hit after a weak jobs report, causing investors to rush to reduce their exposure. As a result, Pump.fun's price plummeted, with the altcoin facing rejection at $0.0061 and falling to a low of $0.0054 at press time. Over the same timeframe, the altcoin's trading volume surged 55% to $605 million, indicating higher sell-side activity. The price drop triggered a long squeeze, with over $8.3 million worth of longs liquidated, compared to $0.7 million in shorts. This intense selling pressure has increased liquidation risks, which could lead to further declines in the market.
Despite the price drop and intense pressure from the derivatives market, spot traders have held steady. Buyers have turned stubborn, and the drop seems to have encouraged them to buy more. Coinalyze data showed that Spot Buy Volume has outpaced Spot Sell Volume for three consecutive days, with a notable increase on October 2nd, when Buy Volume rose to 25.5 billion compared to 24.6 billion in Sell Volume. This indicates that buyers are likely to absorb the pressure and help the market recover from the slip.
Structurally, the market still leans bullish, with Pump.fun making higher lows while respecting the rising support. The MACD and RSI indicators suggest that buyers are still in control of the market, with the MACD on an upward trajectory and the RSI in the bullish zone around 62. However, if sellers in the derivatives market continue at the current pace, Pump.fun will struggle to hold $0.005 and is likely to drop to $0.0046.