The Pump.fun (PUMP) token, after failing to break the $0.0034 resistance, has returned to test the support level of $0.00225. During this process, Bitcoin (BTC) plummeted below $84,500, dragging down altcoins across the board, and technical indicators are also showing bearish momentum.
What happened: Failure to break resistance
The meme token was blocked at a resistance level of $0.0034, despite the platform's positive fundamentals. The DEX trading volume of Pump.fun doubled in January, and the revenue generated also doubled.
More than 90% of those profits are used to buy PUMP tokens in the market. The number of returning users hit an all-time high last week.
The $0.0034 range also acted as a support level in September and October 2025. As Bitcoin slipped below $80,600, buying sentiment waned, and the atmosphere changed rapidly, with the price retracing back to the $0.00225 swing low retest zone that triggered the previous rally.
The OBV (On-Balance Volume) indicator on the daily chart is declining towards the January low, and the RSI has fallen below the neutral line of 50.
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Why It Matters: The structure is at a crossroads.
Despite short-term adjustments, the daily price structure is still technically in an upward trend. However, if it continues to break below $0.00225, swing traders will have no choice but to tilt their outlook towards a full bearish stance.
On February 1, Bitcoin failed to reclaim the lower time frame resistance level of $79,400, which is a burden factor. If resistance is confirmed again in this supply zone, the overall altcoin market, including PUMP, may face additional downward pressure.
The current token price is trading near a crucial inflection point that will determine whether the buying pressure can defend the upward structure or the selling pressure will take control.
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