$PUMP Analysis : Altcoins are being sold off, Pumpfun could break out of the descending wedge pattern.
Pump.fun continues to face selling pressure, falling nearly 2% at the time of writing on Thursday, extending its 10% drop from the previous session. This meme launchpad token is currently retreating close to the support lines formed from the lows of November 17th and 21st, forming a descending wedge pattern – a signal that the negative trend remains dominant.
In a negative scenario, if PUMP closes decisively below the S1 Pivot Point at $0.002, the market could confirm a clear bearish breakout. In that case, selling pressure would likely push the price back to lower support levels at the October 10th low around $0.001496, or even the S2 Pivot Point at $0.001051.
In terms of momentum, the RSI indicator on the daily timeframe is falling to 29, indicating an oversold condition. However, the recovery signal is still not convincing enough as the MACD line has crossed below the signal line and continues to expand in negative territory since Monday.
Conversely, if bottom-buying demand emerges, the PUMP could record a technical rebound towards the upper trend line, connecting the highs of September 14th and November 11th, around the $0.003 mark. However, for a sustainable reversal, the market still needs further confirmation from volume and price momentum.
