PUMP drops by 240.06% within 24 hours during a significant short-term pullback

On September 22, 2025, PUMP experienced a dramatic 240.06% decline within a single day, falling to $0.006351. Over the past week, the token tumbled by 2203.49%, although it had previously soared by 4178.14% over both monthly and yearly periods. This stark contrast across different timeframes reveals PUMP’s highly volatile nature, marked by a sharp short-term downturn following an extended rally.

This abrupt correction has drawn renewed attention from market participants and analysts regarding PUMP’s price action. Technical tools, including the RSI and MACD, have signaled bearish trends in the last day. The RSI slipped into oversold levels, and the MACD line dipped under the signal line, pointing toward persistent downward pressure. These factors indicate that the current selling pressure may persist in the short run, even after PUMP’s robust gains over the last month.

Available information suggests that this price collapse was not triggered by major shifts in underlying fundamentals. Instead, the steep 24-hour drop appears linked to algorithm-driven trading and disruptions in market liquidity, evident from the speed and extent of the move. Experts warn that additional declines may follow if key support levels fail, though they emphasize the asset’s broader trend remains steady.

PUMP’s sharp daily loss brings its volatility into focus and raises considerations about how investors should respond to such rapid market changes. Technical analysis currently points to a bearish outlook in the immediate term, with momentum indicators supporting ongoing downside risk. Nonetheless, the asset’s positive returns over the last month and year persist, and the recent drop may present opportunities for re-entry or short-term trades.

Backtesting Approach
One possible trading method is to open a short position when the RSI falls below 30, setting a stop-loss just above the 20-period EMA. The position could be closed if the RSI moves back above 50 or if the MACD line moves above the signal line. This tactic aims to capitalize on short-term bearish trends in highly volatile assets like PUMP, which are prone to swift price swings. The parameters stem from PUMP’s recent movement, as the RSI dipped below 30 during the sharp daily decline, providing a potential cue for this strategy.