PUMP Drops by 129.71% Within a Day as Market Volatility Surges
- PUMP token plummeted 129.71% in 24 hours on Sep 14, 2025, then surged 7,578.85% in 7 days amid sharp volatility. - Traders and analysts highlight surging on-chain activity, social media sentiment, and yield strategies driving PUMP's extreme price swings. - A proposed backtesting strategy uses RSI and moving averages to capture short-term gains during bullish phases while managing downside risks. - Analysts question long-term viability of PUMP's model despite 12-month 7,578.85% gains, noting market dynami
On September 14, 2025,
After the steep single-day drop, the PUMP token achieved a rapid recovery, soaring by 7,578.85% in the week that followed. This remarkable rebound has attracted the attention of both traders and market analysts, who are now watching closely to see if the positive momentum can be maintained. The price movement has been linked to a spike in on-chain activity and heightened curiosity about the token’s features, especially its automated compounding and yield generation mechanisms.
PUMP’s price action over the last 30 days has echoed this instability, with a dramatic 7,578.85% rally suggesting a robust recovery from its previous lows. This significant upward movement is largely credited to a rise in trading volumes and a wave of positive sentiment across social platforms, where PUMP is often labeled as a speculative, high-risk, high-reward asset. Experts caution, however, that despite the rapid bounce, the fundamental structure of the token continues to face skepticism, with many questioning its long-term sustainability.
Looking at the past 12 months, PUMP’s extreme price fluctuations remain evident. Even after the recent sharp drop, the token has managed a 7,578.85% annual increase, reflecting a recurring cycle of swift gains followed by abrupt corrections. This trend highlights a speculative market environment, where price changes appear to be shaped more by sentiment and momentum than by conventional financial metrics.
Backtest Hypothesis
One suggested backtesting method for PUMP involves combining several technical indicators, such as moving averages, RSI, and notable volume increases. The goal of this approach is to capitalize on the token’s frequent and pronounced price shifts within short periods. The strategy focuses on identifying breakout moments where the RSI surpasses critical thresholds alongside confirmation from the 20-period moving average. A buy position is initiated if the price climbs above the 50-period moving average and the RSI rises above 50, while an exit is triggered if the RSI drops below 30 or if the 20-period moving average falls beneath the 50-period average.
This trading method seeks to align with PUMP’s historical price movements, which often show a strong link between volume surges and upward price trends. The intent is to secure short-term profits during bullish rallies and reduce risk during sharp downturns by adhering to strict exit guidelines. Due to the token’s high volatility, the backtest aims to assess how well this model performs in both trending and turbulent market environments.
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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