Pump.fun's PUMP token has plummeted over 63% since its initial coin offering (ICO), which raised $600 million. Despite the wider cryptocurrency market maintaining stability, PUMP's performance starkly contrasts with Bitcoin's near $117,000 price point. Following a highly anticipated token sale where PUMP debuted with a $4 billion valuation, it now trades at approximately $0.0024, leading to significant investor panic. The recent announcement by co-founder Alon Cohen confirming that an anticipated airdrop would not occur shortly intensified selling pressure. Furthermore, a class-action lawsuit alleging unlicensed casino operations complicates the already grim outlook. Over half of presale participants have sold their tokens, exacerbating downward momentum. Technical analysis reveals a harsh downward trend, with indicators suggesting no imminent reversal. The Relative Strength Index indicates extreme selling pressure without signs of stabilization, and the Average Directional Index confirms this as a strong and concerning downtrend. PUMP faces immediate support levels around $0.00239 and $0.002, while resistance remains at $0.0028 and $0.0034, suggesting a challenging environment for recovery in the near term.

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