Pump.fun's PUMP token fell to $0.0054 after a weak jobs report pushed investors to cut crypto exposure, triggering more than $8.3 million in long liquidations. Spot buyers have kept buying for three straight days, and momentum indicators still point bullish even as derivatives selling intensifies.
PUMP long liquidations exceed $8 million
PUMP faced rejection at $0.0061 and fell to $0.0054 at press time, while trading volume climbed 55% to $605 million over the same timeframe. The broader crypto market sold off following a weak jobs report, and PUMP's downside pressure intensified as a result.
According to Lookonchain, two major traders were liquidated after opening a long position on 707.6 million PUMP worth $3.61 million. CoinGlass data showed the liquidation wave went further, with over $8.3 million in longs wiped out compared to $0.7 million in shorts.
Traders then rushed to close positions, and PUMP futures saw $385 million in outflows against $374 million in inflows. As a result, futures netflow declined 237% to -$10.7 million, a sign of aggressive selling.
Spot buyers hold steady despite the pullback
Despite the price drop, spot traders have not followed the derivatives market lower. Coinalyze data showed spot buy volume has outpaced spot sell volume for three consecutive days.
On October 2, as the market dropped, buy volume rose to 25.5 billion against 24.6 billion in sell volume. If buyers keep holding here, they could absorb the derivatives pressure and help the market recover from the slip.
Momentum indicators still lean bullish
Structurally, PUMP has been making higher lows while respecting its rising support, and the structure has yet to break down. The MACD was on an upward trajectory at the time of writing, and the Relative Strength Index sat deep in bullish territory around 62. Together, the two indicators suggest buyers are still in control.
If spot-buying pressure holds, PUMP could reclaim $0.006. But if sellers in the derivatives market keep selling at the current pace, PUMP will struggle to hold $0.005 and may drop to $0.0046.
Source: AMBCrypto
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