Here’s why traders need to prepare for a 9%-18% PUMP price decline

Pump.fun [PUMP] continued to trend south as Bitcoin [BTC] hovered around the $77K-mark over the weekend. In the last 24 hours, the memecoin launch platform’s utility token PUMP shed 2.2% of its value, with the same falling by 6.2% over the past week.

Earlier this month, AMBCrypto had reported that the major unlock of $18 million worth of PUMP tokens could see a short-term bounce, but would be accompanied by a long-term downtrend.

This short-term bullishness saw the token climb by 12.6% within 5 days to reach $$0.002. Since then, it has slid by 13.4% in 9 days.

Recent bounce to $0.002 was part of a larger downtrend

On the 1-day timeframe, the trend was decidedly bearish. The downward impulse move in March and early April, from $0.00219 to $0.00156, saw a retracement earlier this month. This retracement faced a decisive rejection from the $0.00205-level, which was also the 78.6% Fibonacci retracement level.

The DMI showed there was no strong trend underway. However, as a lagging indicator, it is liable to be mistaken. Based on the daily timeframe’s price action, new local lows can be anticipated.

The $0.00156 and $0.00142 levels would be the next bearish price targets. At the time of writing, the MACD and moving averages showed momentum was starting to turn bearish.

Traders need to keep an eye on the $0.0017-level, which has been a long-term support and could stall downward momentum once again.

Here’s what is needed to shift PUMP’s short-term bias bullishly

The $0.00176-level had some importance over the past two weeks, but it has been breached after much trying from the sellers. On the 2-hour timeframe, the technical indicators agreed that the momentum and downtrend were stronger.

To turn the bearish tides around, PUMP needs to reclaim $0.00176 and $0.00182. This would signal a short-term trend shift, which might develop into longer-term relief.

However, as things stand, the higher and lower timeframes seem to be in agreement on a bearish PUMP price trend. It remains likely that PUMP would see another 9%-18% price drop in the coming weeks.

Final Summary

• PUMP saw a price bounce to $0.002 after a major token unlock earlier in April, but this rally was sold off.
• The persistent bearish pressure was likely to force the altcoin to make new local lows below $0.00156.