The post PUMP fails at $0.0034 as momentum fades – Bearish turn ONLY IF… appeared on BitcoinEthereumNews.com.

Pump.fun [PUMP] token prices failed to breach the $0.0034 resistance despite bullish momentum and news of increased revenue. The market sentiment shift over the past week saw PUMP undo the gains it made earlier. In an earlier AMBCrypto report, it was highlighted that PUMP had the bullish momentum to sail past the $0.0034 resistance level. The likely bearish scenario outlined a rejection at this resistance, which had previously been a support in September and October 2025, but more gains were expected. The warning back then was that a Bitcoin [BTC] drop below $80,600 could shift the PUMP bullish bias by spooking buyers. This has come to pass, even though Pump.fun’s DEX volume doubled in January. The generated revenue also increased by 2x, and over 90% of it is used to buy back PUMP tokens. The number of returning users reached an all-time high just last week. Due to the market-wide sentiment being extremely bearish after Bitcoin crashed past the $84.5k support and as far south as $74.6k on the 2nd of February, a PUMP recovery could take time. Is the PUMP bias bearish now? Source: PUMP/USDT on TradingView The 1-day chart showed that the meme had fallen to retest the $0.00225 level, a swing low that initiated the previous rally. The technical indicators showed that bears have the upper hand right now. The OBV was sinking toward January lows. The RSI fell below neutral 50 to signal a momentum shift on the 1-day timeframe. If the selling continues and drives prices below $0.00225, swing traders will have to assume a bearish bias. Traders’ call to action – Stay bullish The price action showed that, as things stand, the structure remained bullish. However, traders and investors need to be prepared in case of a bearish shift. Bitcoin was unable to climb…

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Filed under: News - @ February 3, 2026 5:28 am