Pump.fun's performance remains robust, yet the PUMP token experiences a significant 35% decline over a week.
The PUMP token, the native cryptocurrency of the Solana meme coin platform Pump.fun, has experienced a steep decline over the past week, with prices dropping by more than 35%.
The downward trend began on July 24, 2025, when the PUMP token price dropped nearly 20% after Pump.fun delayed its airdrop, triggering widespread sell-offs and heightened volatility. This initial decline was followed by an extended 34% fall over the subsequent week, pushing the price below key support levels.
Despite a $31.3 million token buyback effort by the platform, the token continued to decline, losing over 13% in 24 hours as of July 25 amid heavy selling pressure and high trading volume.
The downward price movement was further exacerbated by legal troubles, including a $4–5.5 billion RICO lawsuit, which caused the token to plunge about 45% overall and fall to new lows near $0.0028, breaking below a $1 billion market cap for the first time since launch.
Currently, the PUMP token is trading at $0.003729. DeFi analyst Ignas noted that PumpSwap, the platform's native decentralized exchange, is the key driver behind PUMP's strong performance, contributing nearly 50% of total fee revenue and allocating 25% of swap fees toward PUMP buybacks.
However, the technical structure now points towards the $0.0024 range, a prior demand and liquidity zone for PUMP. The price failed to hold the support level and also failed the subsequent retest, confirming a classic bearish breakdown.
CoinGlass data shows that the PUMP futures open interest has tanked by 14% to $572 million, indicating a significant decrease in investor confidence. Despite being listed on OKX, the PUMP token has failed to regain the lost ground.
Notably, PUMP Top Fund 2 spent 50 million USDC to purchase 12.5 billion PUMP during the same private sale and has already offloaded its entire PUMP allocation. PUMP Top Fund 1, on the other hand, has deposited 17 billion PUMP, valued at $89.5 million, to exchanges via FalconX and still holds 8 billion PUMP worth approximately $29.58 million.
In a recent warning, crypto analyst Crypto Patel urged caution about PUMP, citing the ongoing selling pressure and bearish momentum. With the PUMP token breaking key support at $0.004035, there is a potential for a further drop of up to 40%.
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Investors who held PUMP tokens might consider re-evaluating their strategies, as the token's decline of more than 35% over the past week indicates a potential for further investing losses. The steep drop in PUMP's price can be attributed to a combination of factors, such as delayed airdrops, legal troubles, and widespread selling pressure.
