Summary: No airdrop, heavy selling – PUMP might face 27% more downside risk

Pump.fun Token Hits the Skids: What's Driving PUMP's Steep Decline? Pump.fun's native token, PUMP, has experienced a precipitous fall since its post-ICO debut, plummeting a staggering 56% from its peak of $0.0067. Initial investor fears of rapid profit-taking appear to have materialized, sending the token into a bearish slump. A significant factor was the tokenomics, which released 33% of the total supply on day one, enabling early investors to cash out swiftly. The broader crypto market's recent weakness, including Ethereum's slide and widespread liquidations, also exacerbated PUMP's woes. Investor confidence further eroded when project co-founder Alon Cohen confirmed no immediate plans for an airdrop. This news prompted large holders to sell their tokens, contributing to the downward spiral, with predictions of up to a 27% further drop. Technical indicators paint a grim picture for PUMP's short-term future. A sizeable fair value gap remains unfilled, underscoring the market's strong bearish structure. Significant resistance is anticipated around the $0.0034-$0.0038 area, potentially serving as a shorting opportunity. The Chaikin Money Flow (CMF) is deeply negative, signaling substantial capital outflow from the market. On-Balance Volume (OBV) continues to trend downwards, highlighting intense selling pressure. Despite a hidden bullish divergence on the RSI, it has failed to trigger any meaningful price bounce. Collectively, these signals point to sustained and intense bearish pressure for PUMP in the immediate future.