Pump.fun’s Elites Token Faces 63% Slump Despite $600M ICO
In brief
- Pump.fun’s Elite token has dropped more than 60% since its launch following a $600 million fundraising round.
- The token’s co-founder recently dismissed expectations of an imminent airdrop, exacerbating sell pressure.
- Technical indicators show PUMP is in deep oversold territory with limited signs of stabilization.
The crypto market’s risk-on sentiment remains relatively strong, with Bitcoin holding near $117,000 and most coins showing bullish momentum. However, Pump.fun’s native token PUMP continues its precipitous decline following the highly anticipated $600 million token sale just two weeks ago.
Debuting with a $4 billion fully diluted valuation after the meme coin launchpad’s token sale, PUMP has now dropped by 63%. The token is currently trading at $0.0024, with a market cap of $879 million and a fully diluted valuation of $2.4 billion.
The dissonance between Pump.fun’s impressive business metrics—12 million tokens deployed and over $775 million in revenue generated—and its token’s underperformance has confounded investors and accelerated outflows.
Pump’s Broken Promises
During a July 24 livestream, Pump.fun co-founder Alon Cohen confirmed the highly anticipated PUMP airdrop “would not happen in the immediate future,” triggering immediate selling pressure from investors who had pinned their hopes on widespread token distribution.
Pump.fun operates as a Solana-based token launchpad enabling users to create meme coins quickly and at no cost. Prior to the PUMP token sale, which sold out in just 12 seconds, market speculation centered on the platform’s promise to airdrop a substantial percentage of the token supply to its user base—a promise the company had made following the initial token offering.
The vague responses from leadership and absence of concrete timelines transformed a hyped anticipated event into panicked selling. The $5.5 billion class-action lawsuit filed recently in New York further complicates matters by alleging Pump.fun operates an unlicensed casino scheme through meme coin trading, naming Solana Labs and the Solana Foundation as co-defendants.
The platform’s zero-vesting token model—which initially attracted buyers with promises of immediate liquidity—has backfired dramatically. According to BitMEX data, nearly 60% of presale participants have already sold or transferred their tokens, intensifying the relentless sell pressure that has pushed PUMP 60% below its ICO price.
Fundamental Shifts and Growing Competition
While Pump.fun continues to hemorrhage token value, competitor Let’sBonk has captured significant market share. Although Pump.fun’s platform metrics rival those of established crypto players, revenue has slowed significantly as Let’sBonk expands its presence in the meme coin trading marketplace.
Fundamental shifts are visible and troubling. Daily active users have plummeted 70% from peak levels, revenue numbers have declined throughout the year, and new token launches have decreased in 2025. Moreover, sentiment analysis from prediction markets shows PUMP’s probability of surpassing competitor Bonk has fallen from 18% to just 3.2%.
Despite claims of $20 million in repurchased tokens and another $550,000 in recent buys, these efforts have done little to halt the accelerating sell pressure.
PUMP Price Analysis: Technical Picture is Grim
The PUMP token is currently trading at $0.0024. It has dropped 2.50% in the last hour, 15.28% in the past 24 hours, 41.88% in the past week, and a stunning 63% since its debut on July 16—one day after the ICO.
As the worst-performing token in the top 100, PUMP shows no signs of stabilization despite its youth as a token. While daily candlestick analysis is challenging for such a new asset, the 4-hour chart presents a grim technical picture:
The Relative Strength Index (RSI) sits at 28, indicating extreme selling pressure in deep oversold territory. The Average Directional Index (ADX) at 41 confirms a powerful downtrend. Short-term moving averages form a bearish alignment, with each successive average below the previous one—a textbook bearish configuration.
The Squeeze Momentum Indicator being “off” indicates that volatility has been fully expressed, likely after the ICO. This suggests sideways-to-down movement is the most probable scenario absent strong bullish momentum.
The descending channel pattern visible on the chart provides clear boundaries for the current downtrend. PUMP would need to break decisively above $0.0028—the upper channel line—to hint at a trend reversal. Until then, further declines appear likely.
Key Support and Resistance Levels
- Immediate support: $0.00239 (psychological level and stop-loss zone)
- Strong support: $0.00200 (round number that could attract bargain hunters)
- Immediate resistance: $0.0028 (pivot point and liquidity zone)
- Strong resistance: $0.00340 (could serve as a breakout level)
For most holders, the technical picture presents limited opportunities for meaningful rebounds, with any potential recovery restricted to very short timeframes and likely too small to offset substantial losses.
Pump.fun’s native token continues to face intense sell pressure despite the platform’s impressive launch metrics. With broken promises, growing competition, regulatory scrutiny, and widespread disillusionment among investors, the writing appears on the wall for one of crypto’s most hyped launches.
