PUMP entered a decisive bearish phase on Wednesday, February 4, after breaking down from its previously intact ascending price structure, signaling a clear shift in short-term market dynamics.
The move followed a breakdown below both a rising trendline and a key horizontal demand zone that had previously supported upside continuation, marking a material loss of bullish control.
According to crypto analyst Alpha Crypto Signal, the failure of these dual support levels significantly weakens the bullish thesis, as both dynamic and structural support zones gave way simultaneously.
Such breakdowns often indicate a broader trend transition rather than a temporary pullback, increasing downside risk if buyers fail to respond decisively.
Source: Alpha Crypto Signal X Post
Further reinforcing the bearish outlook, PUMP is now trading below its major exponential moving averages (EMAs).
This technical development typically reflects fading upside momentum and growing seller dominance, as price action below EMAs often confirms sustained bearish pressure rather than short-lived volatility.
Also Read: Pump.Fun (PUMP) Price Prediction Shows 500% to 1000% Upside After Breakout
PUMP Struggles as Former Support Turns Resistance
As long as the price of PUMP stays below the aforementioned support zone, the general market bias is expected to continue to favor the downside.
While the price could continue to experience relief bounces that could potentially form lower highs near the aforementioned resistance, the general market bias is expected to continue to favor the downside.
If the buyers are not able to convincingly take back the broken structure, there are high chances of further downside expansion, which may allow for deeper retracements.
Technically, the breakdown of the structure represents a significant point of inflection for the token, which investors and traders may need to pay heed to, as the trend for PUMP is showing weakness in the short and medium term.
Momentum Indicators Point to Cautious Stabilization
As per TradingView, on Wednesday, 4th February, PUMP is still in a short-term downtrend after being rejected near the 0.0032-0.0033 resistance area.
A series of lower highs and lower lows is still evident, driving the token closer to the 0.00230-0.00225 support area, where selling pressure is easing off but demand is still weak. Trading volume is still low, with prices consolidating within a range.
Source: TradingView
Momentum indicators still support the bears, but stabilization is also evident. The Relative Strength Index (RSI), currently near 36, is still below the 50 mark, showing low bullish momentum.
The Moving Average Convergence Divergence (MACD), however, is still below the zero line, and the recent stabilization of the indicator’s histogram suggests that the momentum of the bears is weakening.
Also Read: PUMP Breaks Long-Term Wedge, Signals Potential Reversal Toward $0.022
