Pump.fun (PUMP) token retreated to test the $0.00225 support level after failing to break through $0.0034 resistance, with technical indicators signaling bearish momentum as Bitcoin (BTC) crashed below $84,500 and dragged the broader altcoin market lower.
What Happened: Token Fails Resistance Test
The meme token's rejection at the $0.0034 level came despite positive fundamentals for the platform. Pump.fun's DEX volume doubled in January, and generated revenue increased by 2x.
Over 90% of that revenue is used to buy back PUMP tokens. The number of returning users reached an all-time high last week.
The $0.0034 level had previously served as support in September and October 2025. Bitcoin's decline below $80,600 spooked buyers and shifted sentiment, sending prices down to retest the $0.00225 swing low that had initiated the previous rally.
On the 1-day chart, the On-Balance Volume indicator was sinking toward January lows while the RSI fell below the neutral 50 mark.
Why It Matters: Structure Hangs in Balance
The 1-day price structure remains technically bullish despite the pullback. A sustained break below $0.00225 would force swing traders to assume a bearish bias.
Bitcoin's failure to reclaim the $79,400 lower timeframe resistance on Feb. 1 adds pressure. A rejection from this supply zone could drag the altcoin market lower, including PUMP.
The token now trades near a critical inflection point that will determine whether buyers can defend the bullish structure or sellers take control.