The token 💩 PUMP, linked to the Pump.fun platform, entered a critical phase after plummeting about 30% recently and reaching a historical low near US$ 0.0019, accumulating a decline of approximately 78% from the peak recorded in July.

The movement did not occur in isolation. Aggressive exit of a whale, technical deterioration, and the advancement of a collective action in the United States began to shape negative sentiment around the asset.

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🐋 Whale capitulates with losses exceeding US$ 5 million

📊 On-chain data shows that a large whale, operating through two linked wallets, closed relevant positions in PUMP:

• 🧾 Wallet 1:

• 1.17 billion PUMP tokens

• Approximate value: US$ 3.21 million

• 🧾 Wallet 2:

• 1,129 billion tokens

• Approximate value: US$ 3.11 million

📌 The whale had been accumulating PUMP for over three months but decided to exit after recording losses exceeding US$ 5 million, about 50% of the invested capital.

This type of movement is often interpreted by the market as a loss of conviction, not just as simple profit-taking.

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🔄 Exchange flows reinforce selling pressure

Data from CoinGlass indicates a relevant shift in Pump.fun Spot Netflow:

• Before: −US$ 1.28 million (net outflow)

• Current: +US$ 509 thousand (net inflow)

The negative pressure comes from multiple factors:


• Unlocks scheduled for December
• Ongoing legal uncertainty
• Decrease in volumes as investors migrate to prediction markets

📉 Positive flows usually indicate that tokens are being sent to exchanges, increasing short-term selling pressure, especially when demand remains weak and buyers struggle to absorb the supply.

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⚖️ U.S. lawsuit adds structural risk to the token

In addition to market pressure, Pump.fun faces increasing legal risk.

A class action is pending in the Federal Court for the Southern District of New York, accusing the platform and related entities of violating U.S. securities laws by facilitating the creation and trading of tokens without proper registration.

📌 Recently, the plaintiffs expanded the scope of the case, including allegations under the RICO Act, which deals with organizations involved in practices deemed systematic and harmful to investors.

🔎 The action also mentions that millions of memecoins created via the platform collapsed, generating billion-dollar losses — numbers that are included as allegations in the process, which have not yet been definitively judged.

The defendants deny the allegations, while the platform claims to have generated about US$ 850 million in fees since its inception.

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📉 Technical structure remains fragile

The combination of:

• 🐋 capitulation of large holders

• 🔄 positive net flow to exchanges

• ⚖️ regulatory and legal uncertainty

put buyers under a severe stress test. Internal supports struggled to absorb selling pressure, resulting in a rapid and uncontested drop.

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🔁 Team buybacks: limited signal

Despite the adverse scenario, the Pump.fun team maintained token buybacks throughout December, signaling some level of commitment to the project.

However, isolated buybacks are rarely sufficient to reverse a trend when:

• market confidence is shaken

• large holders capitulate

• the flow remains unfavorable

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🧠 The PUMP case highlights a central point of the current crypto cycle:

Liquidity and confidence evaporate quickly when legal risk and whale capitulation meet.

As the legal process advances and the flows remain pressured, the token remains vulnerable to new downward movements.

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🐒🗯️💩The drop of PUMP is not just technical — it is structural.

For sentiment to change, the market will need to see:

• real absorption of supply

• consistent reversal of on-chain flows

• and reduction of legal uncertainties

Until then, the risk remains in price control.