Why did the price of PUMP fall?
Pump.fun (PUMP) dropped 1.57% in the last 24 hours to $0.00695, underperforming the overall crypto market, which rose by 0.94%. This decline comes after a strong 39% increase over the past week and reflects traders taking profits amid mixed signals.
- Profit-Taking Pressure – Short-term investors cashed out after PUMP’s 63% gain over 30 days.
- Concerns Over Scam Tokens – Nearly 99% of tokens launched on Pump.fun are flagged as scams or pump-and-dump schemes, raising questions about the platform’s long-term viability.
- Mixed Technical Indicators – The Relative Strength Index (RSI) between 58 and 62 suggests momentum is cooling off after being overbought, while the MACD indicator hints at a possible short-term downturn.
Deep Dive
1. Profit-Taking After Rally (Bearish Impact)
Overview:
PUMP jumped 39% in the past week, fueled by Fitell Corporation’s $1.5 million treasury purchase on October 2 and Binance listing the token in mid-September. The recent 24-hour dip matches traders locking in profits as PUMP nears a key resistance level at $0.0077.
What this means:
The token’s 24-hour turnover ratio of 0.237 (trading volume divided by market cap) shows active trading typical of memecoins, where short-term holders dominate. Given the 63% monthly gains, it was expected that some investors would take profits.
What to watch:
Investors may try to support the price at the 7-day Simple Moving Average (SMA) of $0.00626. If it falls below this, the next support level to watch is the 30-day SMA at $0.00618.
2. Scam Token Backlash (Mixed Impact)
Overview:
According to CryptoNews, 98.6% of tokens launched on Pump.fun are scams or pump-and-dump schemes. The average holding time for Solana memecoins has dropped to just 100 seconds, compared to 300 seconds earlier this year.
What this means:
While Pump.fun generated $1.29 million in fees within 24 hours on October 3, its reputation as a “meme factory” could hurt long-term adoption. The platform’s September 2 “Project Ascend” upgrade introduced dynamic fees to encourage higher-quality projects, but skepticism remains.
3. Technical Correction (Neutral)
Overview:
PUMP’s RSI values (7-day: 62.48, 14-day: 58.73) have cooled down from overbought levels, and the MACD histogram has turned slightly negative (-0.00000337).
What this means:
This pullback is a healthy pause after a rapid price increase. Bulls are watching the 23.6% Fibonacci retracement level at $0.00768 as the next resistance point.
Conclusion
The recent dip in PUMP’s price reflects natural profit-taking and ongoing concerns about the quality control of tokens on the platform, despite strong fundamentals like institutional interest from Fitell and support from Binance. Technical indicators suggest this is a temporary pause, but the memecoin remains highly volatile due to its speculative nature.
Key watch: Will PUMP hold the $0.0062 support level, or will profit-taking push it down to $0.0058? Keep an eye on the Polymarket prediction contract (50/50 odds) for PUMP reaching new all-time highs by December 31 to gauge market sentiment.
What could affect the price of PUMP?
PUMP’s price swings between meme-driven excitement and steady growth potential.
- Platform Improvements – New fee structure and Solana blockchain integration help attract more users
- Corporate Interest – Nasdaq-listed Fitell’s $1.5 million purchase of PUMP tokens
- Token Release Schedule – 57% of tokens still locked, gradually unlocking through 2029
In-Depth Look
1. Project Ascend & Fee Changes (Positive Signs)
What happened: In September, PUMP launched Project Ascend, introducing a tiered fee system where fees range from 0.95% down to 0.05%, depending on the token’s market value. This change generated $2.1 million for creators in just one day. Around the same time, PUMP was listed on Binance, and by October 1, it became accessible through Apple Pay and Robinhood, making it easier for everyday users to buy and sell.
Why it matters: Lower fees for well-established tokens can reduce quick pump-and-dump schemes and attract more serious projects. This is important because nearly 99% of meme coins have a reputation for scams (Cryptonews).
2. Corporate Treasury Activity (Mixed Signals)
What happened: On October 2, Fitell Corp (now called Solana Australia), a company listed on Nasdaq, bought 216.8 million PUMP tokens worth $1.5 million. They also secured a $100 million credit line backed by Solana assets. However, Fitell’s stock price dropped 14% after the announcement, showing some investor doubts about their move into crypto.
Why it matters: Institutional buying shows confidence in PUMP’s potential, but since nearly all PUMP tokens (99.99%) are held by a few large wallets, this concentration raises concerns about possible price manipulation (The Block).
3. Token Supply & Unlock Schedule (Potential Risks)
What happened: 43% of PUMP’s total 1 trillion tokens are still locked and will be gradually released until late 2029. The team has bought back and burned $124 million worth of tokens since July, but daily buybacks of $1-2 million only slightly counterbalance selling pressure from early investors.
Why it matters: Past data shows that early investors sold off large amounts of PUMP tokens for significant profits after the initial coin offering (Coincu). Similar sell-offs could happen again as more tokens unlock.
Conclusion
PUMP’s future depends on balancing hype-driven trading with real improvements to the platform. While Solana integration and token buybacks offer short-term boosts, the large number of tokens set to unlock and ongoing legal challenges (including a $5.5 billion lawsuit) pose risks.
Keep an eye on the $0.0062 price level — if it falls below this, it could trigger a wave of forced selling.
What are people saying about PUMP?
Talk around Pump.fun (PUMP) swings between hope from buybacks and worry about big holders selling off. Here’s what’s trending:
- A $30 million buyback raises hopes of less supply but faces selling pressure
- Early investors (whales) sold $101 million worth below their initial price, causing concern
- The $0.0034 price level is a key point that could decide the next move
Deep Dive
1. Buyback Activity Shows Mixed Signals
According to @Lookonchain, Pump.fun recently spent 118,350 SOL (about $19.2 million) to buy back 2.99 billion PUMP tokens at $0.0064 each — which is 87% higher than the current price. This was the biggest daily buyback since July.
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What this means: This buyback reduces the number of tokens available (about 4.26% of circulating supply), which is generally positive. However, because the buyback price is higher than the current price, it could act as a resistance level, making it harder for the price to rise in the short term.
2. Large Early Investors Selling Below ICO Price Raises Concerns
CryptoPatel reports that two early investment funds sold 29.5 billion PUMP tokens (worth $101 million) at prices below their initial coin offering (ICO) price. Currently, 55% of the supply is still held by investors who bought at higher prices and are underwater.
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What this means: This selling pressure from early investors is bearish and could push the price down by as much as 40% to $0.0024 if the key support at $0.0034 breaks.
3. Technical Analysis Points to a Critical Price Level
mkbijaksana notes that PUMP is forming a higher low, and a breakout above the 21-day exponential moving average (EMA) at $0.004228 could signal a bullish reversal.
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What this means: The outlook is neutral for now. If the price holds above $0.0034 and breaks above $0.004228, it could trigger a 27% rally. But if it fails, the price may continue to fall.
Conclusion
The outlook for Pump.fun (PUMP) is mixed. On one hand, buybacks show efforts to reduce supply and support the price. On the other, big holders selling below their purchase price adds selling pressure. The recent liquidity boost from the Glass Full Foundation on Solana caused a 7% price jump, showing some positive momentum. However, the platform’s revenue has dropped 97% year-to-date, which is a concern.
Keep a close eye on the $0.0034 price level. Staying above this could confirm a positive trend, but breaking below may lead to further declines. Also, watch on-chain whale movements for early signs of big investors exiting.
What is the latest news about PUMP?
PUMP is gaining momentum on Solana’s meme coin trend as big investors step in, but questions about its long-term stability remain. Here’s what’s happening:
- Fitell’s $1.5M Investment (October 2, 2025) – Australian company Fitell bought 216.8 million PUMP tokens and rebranded as Solana Australia Corp.
- Easier Payments (October 1, 2025) – Apple Pay, Robinhood, and Phantom wallet integrations make buying PUMP simpler.
- All-Time High (ATH) Bet (October 3, 2025) – Polymarket traders are split 50/50 on whether PUMP will hit a new high by December.
In-Depth Look
1. Fitell’s $1.5M Investment (October 2, 2025)
What happened: Fitell, a company listed on Nasdaq, bought 216.8 million PUMP tokens for $1.5 million to add to its treasury. They also secured a $100 million credit line to invest more in the Solana ecosystem. Following this, Fitell changed its name to Solana Australia Corporation, shifting focus from fitness retail to cryptocurrency.
Why it matters: This is a positive sign for PUMP because it’s the first time a public company has invested in it, which could encourage other institutions to follow. However, Fitell’s stock price dropped 14% after the announcement, showing some investors are unsure about the company’s sudden move into crypto.
2. Easier Payments (October 1, 2025)
What happened: Pump.fun added support for Apple Pay, Robinhood, and Phantom wallets. This makes it easier for everyday buyers to purchase PUMP tokens. This update came after Binance listed PUMP in September, adding 350 million tokens to the market’s liquidity.
Why it matters: This is somewhat positive because making purchases easier could attract more retail buyers. However, it’s important to note that 98.6% of tokens launched on Pump.fun are scams, so trust remains a big challenge.
3. All-Time High (ATH) Bet (October 3, 2025)
What happened: On Polymarket, a prediction market platform, traders are evenly split on whether PUMP will surpass its previous high of $0.0088 by the end of the year. To reach that, PUMP needs to rise about 25% from its current price of $0.007. Technical analysis suggests it could hit $0.009 if it holds above $0.0062 support.
Why it matters: This shows a divided market—half are optimistic about PUMP’s growth, while the other half worry the market is getting too crowded. PUMP’s recent 75% monthly gain also means some investors might sell to take profits if confidence drops.
Conclusion
PUMP’s growing interest from institutions and easier payment options are positive signs, but the high number of scams on the platform raises concerns. Whether moves like Fitell’s investment can overcome these issues remains to be seen. Keep an eye on Bitcoin’s market dominance—if it falls below 57%, it could open the door for altcoins like PUMP to gain more liquidity and potentially rise further.
What is expected in the development of PUMP?
Pump.fun’s roadmap is centered on growing its ecosystem, encouraging trading activity through rewards, and building strategic partnerships.
- Volume Incentive Program (Q4 2025) – Extending token rewards for traders to increase platform use.
- Glass Full Foundation Initiatives (Ongoing) – Supporting Solana projects by adding liquidity.
- Governance Integration (2026) – Allowing PUMP holders to vote on upgrades and revenue sharing.
- Aggressive Buybacks (Q4 2025) – Continuing daily token repurchases worth $1–2 million to reduce supply.
In-Depth Look
1. Volume Incentive Program (Q4 2025)
What it is: Pump.fun is continuing its 30-day program that rewards users with PUMP tokens based on their trading activity, as noted in recent SDK updates (Dumpster DAO). This aims to attract more traders and compete with platforms like LetsBONK.fun. While the initial plan was to distribute 1 billion PUMP tokens daily, adjustments are expected to keep the system sustainable.
Why it matters: This is positive for PUMP because it encourages more trading and user engagement. However, if too many tokens are given out, it could lead to inflation, reducing token value over time.
2. Glass Full Foundation Initiatives (Ongoing)
What it is: Started in August 2025, the Glass Full Foundation (GFF) injects liquidity into Solana-based projects that have strong, loyal communities (GFF Announcement). The exact criteria for choosing projects and where the funding comes from are not fully clear, which raises some questions about transparency.
Why it matters: This could be good for PUMP if it helps grow the Solana decentralized finance (DeFi) ecosystem, indirectly benefiting the platform. However, there’s a risk if the program is not managed well or loses focus.
3. Governance Integration (2026)
What it is: Pump.fun plans to introduce a governance system where PUMP token holders can vote on protocol changes and how revenue is shared (Revenue Sharing Initiative). This follows a common trend in DeFi but doesn’t yet have a set timeline.
Why it matters: This is a positive long-term development because it gives the community more control and can increase the token’s usefulness. However, delays or poor implementation could lessen its impact.
4. Aggressive Buybacks (Q4 2025)
What it is: Since July 2025, Pump.fun has bought back $124 million worth of PUMP tokens, burning half and reinvesting the rest (Crypto.News). Daily buybacks of $1–2 million aim to reduce the number of tokens available on the market, helping to support the price.
Why it matters: This is a short-term positive because reducing supply can increase token value. The success of this strategy depends on continuing strong fee revenue, which was $51.5 million per month as of October 2025.
Conclusion
Pump.fun’s roadmap combines short-term incentives to boost trading with long-term plans for ecosystem growth. By using buybacks and governance, it aims to create a more stable token economy. While competition and token unlocks present challenges, moves like Fitell’s $1.5 million PUMP purchase show growing institutional interest. The key question is whether PUMP’s value will catch up to competitors like Hyperliquid as its ecosystem develops.
What updates are there in the PUMP code base?
Pump.fun’s recent updates focus on improving trading speed and adding rewards to encourage user participation.
- Mobile App Upgrade (June 28, 2025) – Introduced real-time price alerts and one-click trading for faster, smoother transactions.
- SDK Incentive Features (July 28, 2025) – Added tools to support a PUMP token rewards program for active traders.
- Revenue Dashboard Launch (August 4, 2025) – Made it possible to track protocol revenue and token buybacks in real time.
In-Depth Look
1. Mobile App Upgrade (June 28, 2025)
What happened: Pump.fun released version 2.0 of its mobile app, designed to make trading meme coins faster and easier. New features include a "Movers Feed" that highlights trending tokens and a "tap-to-ape" button for quick trades. Backend improvements cut down response times by 40%, which is important for handling Solana’s fast transaction speeds.
Why it matters: Faster trades and better market insights could lead to more activity on the platform, which is good news for PUMP. However, the token price didn’t immediately rise, suggesting it may take time for users to fully adopt these improvements. (Source)
2. SDK Incentive Features (July 28, 2025)
What happened: Updates to the software development kit (SDK) revealed plans for distributing PUMP tokens as rewards based on trading volume. The code tracks user activity and plans daily token rewards, though the placeholder amount of 1 billion PUMP tokens per day (about 3% of total supply monthly) raises questions about long-term sustainability.
Why it matters: Offering rewards could encourage more trading in the short term, but giving out too many tokens risks lowering their value. Since this program hasn’t been officially confirmed, there’s some uncertainty about how it will play out. (Source)
3. Revenue Dashboard Launch (August 4, 2025)
What happened: Pump.fun introduced a public dashboard that shows real-time data on protocol revenue and token buybacks. Over six days, the platform spent $30.6 million in SOL to buy back PUMP tokens. This required integrating on-chain data with live analytics to improve transparency.
Why it matters: Transparent buybacks can help support the token’s price, which is positive for PUMP holders. However, the dashboard showed buybacks were actually higher than the protocol’s revenue (102%), raising concerns about how sustainable this approach is over time. (Source)
Conclusion
Pump.fun is focusing on features that benefit traders and increase token use, but there are risks related to aggressive buybacks and unconfirmed reward programs. The big question is whether upcoming updates in late 2025 will address these challenges while keeping Pump.fun a leader in Solana’s meme coin space.