PUMP Token Pulls Back to $0.00225 Support Amid Bearish Momentum
The PUMP token has retreated to its support level of $0.00225 after failing to break through the $0.0034 resistance. This pullback comes despite positive fundamentals for the platform, which include a doubling of DEX volume in January and a 2x increase in generated revenue.
The majority of this revenue is used to buy back PUMP tokens. The number of returning users reached an all-time high last week, but Bitcoin's decline below $84,500 has spooked buyers and shifted sentiment.
The technical indicators are bearish, with the On-Balance Volume indicator sinking toward January lows and the RSI falling below 50. However, the 1-day price structure remains technically bullish, and a sustained break below $0.00225 would force swing traders to assume a bearish bias.