Pump.fun (PUMP), SPX6900 (SPX) and Bittensor (TAO) all plummeted, becoming the leading names in the decline of the cryptocurrency market over the past 24 hours, amidst a wave of liquidations with a total value exceeding 500 million USD. Retail investors expressed their dissatisfaction, claiming that large institutions have intervened and manipulated the market, especially when Bitcoin suddenly faced heavy selling early this morning.
Not only that, macro risks are looming over the crypto market, as the US CPI data is expected to be released on Thursday and the Bank of Japan's interest rate hike decision on Friday is thought to potentially trigger even stronger volatility.
From a technical perspective, the weakening trend of PUMP, SPX, and TAO is likely not stopping yet. Momentum indicators continue to signal negatively, reflecting that selling pressure is still prevailing and opening up the risk of prolonging the downtrend in the short term.
Pump.fun may break out of the descending wedge pattern
Pump.fun continues to face selling pressure as it decreases nearly 2% at the time of writing on Thursday, extending the 10% drop from the previous session. This meme launchpad token is currently edging close to the support line formed from the bottoms on November 17 and 21, belonging to the descending wedge pattern - a signal indicating that the negative trend is still prevailing.
In a negative scenario, if PUMP closes decisively below the S1 Pivot Point level at 0.002 USD, the market may confirm a clear bearish breakout. At that point, the selling pressure is likely to pull the price back to the lower support area at the bottom of October 10 around 0.001496 USD, or even the S2 Pivot Point at 0.001051 USD.
In terms of momentum, the RSI indicator on the daily frame is falling to 29, indicating an oversold state. However, the recovery signal is still not convincing enough as the MACD line crosses below the signal line and continues to expand in the negative zone since Monday.
On the contrary, if buying pressure emerges, PUMP may record a technical rebound towards the upper trend line, connecting the peaks of September 14 and November 11, around the 0.003 USD mark. However, for a sustainable reversal, the market still needs further confirmation from volume and price momentum.
SPX6900 faces the risk of deeper correction
SPX6900 continues to face strong selling pressure as it decreases nearly 2% at the time of writing on Thursday, following a deep drop of up to 12% in the previous session. With the current developments, the most probable scenario is that the price will continue to slide towards the bottom of November 21 around 0.4375 USD, equivalent to a further decline of about 8%.
Technically, the RSI indicator is dropping to 34 and shows no signs of bottoming, indicating that selling pressure is dominating and the market is gradually approaching the oversold zone. At the same time, both the MACD line and the signal line are maintaining a downward trend, reflecting increasing bearish momentum.
On the contrary, if SPX experiences a technical rebound, the uptrend is likely to soon encounter resistance at the downward sloping 50-day EMA line, around the 0.6845 USD region — a noteworthy short-term resistance level.
Bittensor accelerates the downward trend
Bittensor continues its streak of declines for the fifth consecutive session as the price breaches the important threshold of 250 USD. At the time of writing, this AI token has decreased nearly 3% on Thursday, following a sharp drop of 9% in the previous session, indicating that selling pressure has not eased.
Technically, the nearest support zone for TAO is identified at the bottom of April 16 around the level of 222 USD, before dipping deeper towards the psychological threshold of 200 USD. Similar to PUMP, the RSI indicator has fallen into the 30 area, reflecting a clear oversold state, while the MACD line continues to maintain a negative signal after the cross down on Wednesday.
On the contrary, to open up significant recovery opportunities, TAO needs to quickly regain the level of 254 USD — corresponding to the bottom of December 1 — in order to weaken the current downtrend and improve market sentiment.