Pump.fun (PUMP) struggles to recover as retail demand weakens, revenue plummets

Pump.fun (PUMP) is trading steadily around the $0.0018 mark as of Saturday. This price indicates a slight recovery during the day, although the overall upward momentum in the cryptocurrency market remains restrained by various obstacles, resulting in a less positive weekly performance.

From a broader perspective, the native token of this meme coin issuance and trading platform has decreased nearly 10% compared to the opening level of $0.0020 at the beginning of the week, reflecting a bleak outlook across the crypto market. The prolonged weakening trend of PUMP not only shows investor caution but also correlates with declines in derivatives activity and the platform’s overall revenue.

Pump.fun revenue declines due to low retail investor interest

Pump.fun’s revenue has been sharply declining in recent weeks. As of Thursday this week, the average revenue was only $3.59 million, a significant drop from $6.63 billion the previous week. Data from DefiLlama further illustrates this downward trend, recording Pump.fun earning just $9.27 million from the week starting January 26 to February 6.

In this context, pressure increases as Pump.fun heavily relies on platform revenue to fund its token buyback program — a strategy aimed at reducing circulating supply of PUMP and strengthening its long-term value.

Pump.fun revenue | Source: DefiLlama The derivatives market also looks unimpressive. The open interest (OI) of PUMP futures contracts remained around $165 million on Saturday, after two weeks fluctuating within a narrow range from $142 million to $185 million. This indicates that capital flow and trading activity have yet to show signs of a breakout.

Notably, OI hit a historical high of $1.23 billion in September, coinciding with PUMP reaching its all-time high of $0.0090. Compared to that euphoric period, the current sharp decline clearly reflects waning interest from retail investors.

Open interest (OI) in Pump.fun futures market | Source: CoinGlass## Technical outlook: PUMP holds a key support level

PUMP remains resilient above the critical support zone of $0.0018, as bulls attempt to generate momentum for a short-term breakout above the key $0.0020 level. However, upside potential may face resistance as several EMA lines (sloping downwards) act as barriers, specifically the 50-day EMA ($0.0022), 100-day EMA ($0.0026), and 200-day EMA ($0.0033).

On the daily timeframe, the MACD indicator’s MACD line remains below the signal line, indicating that downward pressure is re-emerging. Meanwhile, the RSI hovers around 41, below the neutral threshold, suggesting short-term prospects are leaning toward weakness.

Conversely, if the support zone at $0.0018 is broken, PUMP risks falling back to the weekly low of $0.0017. More concerning, losing this level could push the token into a “support void,” opening the possibility of a sharp decline toward its all-time low around $0.0010.