Headline: Pump.fun faces expanded class-action as PUMP token tumbles — technicals point to possible retest of $0.0025 A federal court has cleared the way for an expanded class-action lawsuit naming the Solana Foundation, Jito Labs, Pump.fun and several executives after a whistleblower released roughly 5,000 internal chat messages. Those messages underpin allegations of insider trading and market manipulation tied to Pump.fun — a memecoin launch platform accused of facilitating the collapse of 98.6% of the roughly 14 million tokens launched on it. Plaintiffs allege the fallout inflicted between $4 billion and $5.5 billion in retail losses. Market reaction has been severe for the platform’s native token, PUMP (PUMP/USDT). Since December 9 the token has plunged about 39.3%, sliding from $0.0032 to $0.00196 and breaking a long-standing demand zone at $0.0025 that had held on three separate tests since July. That support break marks a notable shift in sentiment after months of seller dominance. Key on-chain and technical reads - Volume/Breadth: The Chaikin Money Flow (CMF) on the daily chart has sat below -0.05 for much of the past six weeks, signaling sustained distribution. - Momentum: The Money Flow Index (MFI) sits around 40, consistent with selling pressure and bearish momentum. - Open interest: CoinGlass/Coinalyze data shows open interest rose ~4% in the last 24 hours even as PUMP price dropped ~1.57%, suggesting leverage is building on the move down. - Liquidation clusters: The liquidation map flags concentrated leverage around $0.00193 and $0.00207 — levels that could be magnetized by stop squeezes before any meaningful reversal. Fibonacci and price-level outlook Using the recent swing down to plot Fibonacci retracements, the 61.8% and 78.6% levels line up near $0.0025 and $0.0026 respectively — meaning a corrective bounce to those zones is plausible even amid the larger downtrend. Shorter-term structure on the 1-day and 1-hour charts remains bearish, and a push through the $0.00207–$0.0021 band would likely signal bearish continuation. Trading considerations (opinion) - Bounce candidates: $0.0023–$0.0025 and $0.0026 are key resistance zones where bounces could stall. - Liquidation risk: Watch $0.00193 and $0.00207 for concentrated leverage that may accelerate short-term moves. - Setup example: Traders looking to short on a retest could consider tight stops — for instance, a hypothetical short entry around $0.00207 would be invalidated by a move above $0.0021, which is a local hourly swing high. (This is illustrative, not investment advice.) Bottom line PUMP is trading under heavy pressure amid mounting legal exposure for Pump.fun and related entities, with technical indicators and leverage maps pointing to further downside risk and volatile chop around key levels. While Fibonacci levels suggest a bounce back toward $0.0025–$0.0026 is possible, the dominant trend and on-chain metrics favor sellers until proven otherwise. Disclaimer: This article is informational and reflects the author’s opinion. It is not financial, trading, or investment advice. Cryptocurrency investments carry high risk; do your own research before trading. © 2025 AMBCrypto. Read more AI-generated news on: undefined/news