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PUMP Plunges by 853.44% Within a Day as Intense Short-Term Fluctuations Occur

PUMP Plunges by 853.44% Within a Day as Intense Short-Term Fluctuations Occur

Bitget-RWA2025/09/25 04:50
By:CryptoPulse Alert

- PUMP plummeted 853.44% in 24 hours to $0.00515, contrasting with 1450.47% gains over 1 month and 1 year. - The crash suggests panic selling triggered by governance shifts, security issues, or large sell-offs, not gradual bearish trends. - Technical indicators fail to predict PUMP's erratic behavior, as volatility stems from sentiment and high-impact events, not fundamentals. - A backtesting strategy proposes using 24-hour price drops as sell signals and volatility spikes to capitalize on rebounds like th

On September 25, 2025, PUMP experienced a dramatic 853.44% plunge in just 24 hours, dropping to $0.00515. Over the course of a week, the token fell by 2806.31%, but over the past month and year, it surged by 1450.47%.

This swift and steep price drop within a single day signals either a sudden liquidity crisis or a major shift in trader sentiment. Unlike slow, sustained declines that might indicate a prolonged bearish outlook, such a drastic move points to a specific event—possibly a governance issue, security breach, or a large-scale sell-off—that triggered widespread panic selling. The 853.44% decrease pushed PUMP down to $0.00515, a value not seen recently and well below its monthly range, even though it had climbed 1450.47% in the same timeframe.

Looking at the 7-day trend, PUMP’s price tumbled by 2806.31%, underscoring the intensity of the short-term correction. This sharp decline is a stark contrast to the 1450.47% growth seen over the previous month, highlighting the asset’s extreme volatility. The identical 1450.47% gains over both monthly and yearly periods further emphasize PUMP’s unpredictable and cyclical price movements, which seem to be fueled more by speculation than by underlying fundamentals.

Traditional technical tools like moving averages and volume surges have not proven effective in forecasting PUMP’s price action, given its unpredictable swings. This level of volatility reduces the reliability of standard technical analysis, indicating that PUMP’s value is more heavily swayed by market mood and impactful news than by on-chain data or broader economic trends.

Backtesting Strategy

An outlined backtesting approach for PUMP centers on exploiting short-term momentum and volatility trends. This method aims to capture rapid price movements by using technical cues such as sudden percentage shifts and spikes in volatility. The premise is that PUMP’s past price swings can be analyzed with a set of reactive indicators—like 24-hour drops beyond a certain level—which could have been used to trigger simulated buy or sell actions in a backtest scenario.

This strategy is especially pertinent for PUMP, given the extraordinary 853.44% decline in a single day. Backtesting could assess how effective it would have been to initiate a sell at the start of such a drop, potentially reducing losses. The approach also evaluates the potential to benefit from rebounds, such as the 1450.47% monthly surge, by deploying volatility-based buy signals after significant corrections.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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