January 22 News, Pump.fun (PUMP) has once again triggered market caution after a short-term rebound. Although the project team recently announced the launch of Pump Fund to provide funding support for early open-source projects on the platform, on-chain data and technical charts reveal clear risk signals, and PUMP’s price trend is facing potential correction pressure.
According to public data, PUMP once rose about 12.5% on the day, reaching a high of $0.0027, then fell back to around $0.0026, with an intraday increase of approximately 6.2%. This surge is closely related to Pump.fun’s new fund plan. Pump Fund will provide $250,000 to each of the 12 selected teams, with a fixed valuation of $10 million, and will host a 30-day “Build in Public” hackathon, aiming to help Pump.fun shed its “Meme coin factory” label and transition into a real application ecosystem.
However, changes in funding sentiment are not optimistic. Santiment shows that the number of whale addresses holding between 10,000 and 1 billion PUMP has continued to decline this week, indicating that some large holders are reducing their positions or exiting. Historical experience suggests that when whale interest wanes, buying pressure often weakens, making prices more susceptible to emotional selling.
From a technical perspective, the daily chart of PUMP has formed an ascending wedge since late December 2025, which is a typical bearish pattern. Once the price breaks below the lower trendline, it often triggers a faster correction. Meanwhile, the MACD is approaching a death cross, and the Chaikin Money Flow index is nearing below zero, indicating capital is flowing out of this token.
The current key support level is near the 50-day moving average, approximately at $0.0024. If this level is broken, the next technical target points to the December 24 low of $0.0016, representing a decline of about 38% from the current price. While Pump Fund offers long-term growth potential, the short-term price risk for PUMP is significantly increasing, and the market may face a more intense directional decision.
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