Pump.fun's PUMP token has plunged over 63% since its ICO, trading at approximately $0.0024. Despite the overall stability in the crypto market, PUMP faces intense sell pressure after its co-founder announced the cancellation of a highly anticipated airdrop. This news has disappointed investors who had speculated on additional token distributions. Compounding these issues, a class-action lawsuit alleges that Pump.fun operates an unlicensed trading scheme, increasing investor concerns. The token's rapid initial sale did not translate into sustained value, with indications showing that nearly 60% of presale participants have sold their tokens. A severe drop in daily active users and revenues coupled with the emergence of competitors like LetsBonk further exacerbate Pump.fun's challenges. Technical analysis indicates a strong downtrend, with key indicators such as the RSI and ADX confirming significant selling pressure without signs of immediate recovery. PUMP needs to break past resistance levels to suggest any reversal in its bearish trajectory, yet it currently remains vulnerable to further declines.

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