Pump.fun Price Forecast: PUMP Risks 26% Drop as RSI Hits 88

Pump.fun (PUMP) has retreated by nearly 12% in the past 7 days after the token hit our short-term target of $0.0051 and now faces the possibility of a dramatic pullback ahead as the rally seems overheated.

Trading volumes during this period have surged by 23%, currently accounting for 14.5% of the asset’s circulating market cap at $245 million.

This high figure indicates strong selling volumes at a point when the price action is clearly rejecting a move above a technically relevant area.

PUMP was one of the first tokens to break past its 200-day exponential moving average (EMA) during what appears to be the end of a 10-month-long bear market.

However, the U.S. Securities and Exchange Commission (SEC) decision to propose a new set of rules for the crypto industry ahead of Congress’s discussion of the Clarity Act triggered another leg up for this token.

In addition, the Treasury Department doubled the amount of bonds it will buy back in September, putting pressure on the Federal Reserve to ease financing conditions even though inflation remains quite high.

Pump.fun is Currently Valued at Less Than 4x Its Revenues

On-chain data indicates that Pump.fun had its best month in terms of revenues collected since September 2025 — back when the token traded at around $0.0085.

Thus far in August, the protocol earned $56 million from a total of $139 million it collected. This implies a 65% jump compared to the previous month. In addition, DEX volumes rose for the second month in a row to $22.3 billion, resulting in a 12% increase compared to July.

The protocol’s revenues in the last 12 months currently sit at $466 million. This means that PUMP is currently trading at less than 3.7x its revenues. This is a decent valuation multiple for a project that has demonstrated that it can capitalize on the strong demand that exists for trading memecoins on the Solana blockchain.

From a fundamental standpoint, Pump.fun seems undervalued. The fact that the U.S. could soon open up its huge market to DeFi applications may unlock billions of dollars in assets that may flow to this protocol if the Clarity Act is passed.

Even though U.S. users can access this platform freely right now, clearer regulations may result in partnerships that further expand the protocol’s footprint in this market.

PUMP Faces a Potential Pullback to $0.0032 as RSI Flashes “Sell”

In a previous PUMP price prediction, we set forth a long-term target of $0.0085 that would still offer an attractive 98% upside potential at the current price.

However, the daily chart shows that the Relative Strength Index (RSI) just hit extreme overbought levels at 88. The last time this momentum oscillator got this high, the last bear market started.

This led to an 80% drop in 10 months. Even though we don’t expect this to be the beginning of another bear market for PUMP, we do see it as a warning signal of an imminent pullback to a former resistance that should now turn into support at $0.0032. This means a 26% downside risk based on the current price.

The price action is already showing signs that the selling pressure has ramped up after the token hit our previous short-term target of $0.0051. If early buyers decide that it is time to cash out on their profits, PUMP could take a quick trip down in the next few days.