Despite a positive tone in the broader crypto market, Pump.fun's PUMP token has plummeted 63% since its initial coin offering (ICO), trading now at $0.0024. The token's decline is attributed to investor disappointment over the cancellation of a promised airdrop and a recent class-action lawsuit alleging that Pump.fun operates an unlicensed casino scheme. Following the ICO, which raised $600 million in just 12 seconds, the token had initially reached a market cap of $4 billion but has since faltered. Additionally, nearly 60% of presale investors have sold or transferred their tokens, contributing to the ongoing sell pressure. Technical indicators portray a bleak outlook for PUMP, with the Relative Strength Index (RSI) highlighting extreme selling pressure and signaling no reversal in sight. Furthermore, competitor LetsBonk has started to capture market share, further exacerbating PUMP's struggles. Current resistance and support levels suggest continued downward movement unless significant changes occur.

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