Pump.fun's PUMP token has dropped over 63% since its highly anticipated ICO, plummeting from an initial market cap of $4 billion to around $879 million. Despite general bullish sentiment in the crypto market, PUMP's performance has been dismal, trading at $0.0024. A recent statement from co-founder Alon Cohen indicating no immediate airdrop intensified sell pressure, as expectations had been set high for a distribution of tokens. Compounding PUMP's struggles, a class-action lawsuit alleging unlicensed casino operations has emerged, further discouraging investors. Additionally, competition from rival meme coin platform LetsBonk is increasing, eroding PUMP’s market share. Technical analysis reveals bearish signals, with the Relative Strength Index indicating extreme selling and the Average Directional Index confirming a strong downtrend. The token shows no bullish divergence, maintaining a dynamic resistance on any attempted rallies. Immediate support is noted at $0.00239, while substantial resistance exists at $0.00340, indicating a challenging outlook for PUMP's recovery in the near future.

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