Pump.fun's PUMP token has plummeted over 63% since its ICO, which generated $600 million shortly after launch. Currently trading at $0.0024, PUMP's market cap stands at $879 million. Despite Pump.fun's operational success, the disconnect between its business performance and token valuation has left many investors disillusioned. A significant factor in the sell-off is the co-founder's announcement of a postponed airdrop, which many had anticipated. Compounding issues include a $5.5 billion class-action lawsuit claiming the company operates an unlicensed trading platform, and aggressive competition from rivals like LetsBonk, which have gained market share. As for technical analysis, indicators suggest a strong downtrend, with the Relative Strength Index (RSI) in oversold territory and key resistance levels existing above current prices. Immediate support is found at $0.00239, while strong resistance appears at $0.00340. The outlook remains grim for PUMP without signs of a reversal.

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