PUMP Token Plunges Despite Buyback as Congress Reviews Crypto

Pump.fun Team Executes Buyback Amid Token Transfer Concerns

The PUMP price soared as the Pump.fun team moved ahead to exercise a buyback of the token.

However, experts note that on July 15, the team transferred 13.75 bn PUMP tokens to Wintermute, which predictably weighed on the price action.

Congressional Crypto Bills Fail to Ignite Market Momentum

This week, the US Congress is reviewing several bills – GENIUS, CLARITY, and Anti-CBDC – aimed at granting cryptocurrencies official status and adopting regulations for this market.

While these developments are key to the industry’s future, they have not provided an additional boost to PUMP’s price.

Technical Analysis Reveals Deepening Bearish Trend

From the TA standpoint, PUMP broke through the $0.0063 support line on Coinbase, dropped to the next low at $0.0055 and then breached it.

The trendline shows a clear negative slope, confirming the current downtrend.

Key Resistance and Support Levels for Potential Recovery

In case of a technical rebound (though there are no signs of that shaping up any time soon), the first resistance level could be $0.0055, aligning with the 23.6% Fibonacci retracement level.

A breakout to the upside would give the bulls a shot at $0.0058.

Given the recent price dynamics, a plausible scenario includes an extension of the bearish trend, with a potential breakdown of the local low at $0.0051.