Altcoin sell-off: Pump.fun, SPX6900, and Bittensor lead with double-digit declines

Pump.fun (PUMP), SPX6900 (SPX), and Bittensor (TAO) all plummeted simultaneously, becoming the leading names in the cryptocurrency market decline over the past 24 hours, amid a wave of liquidations exceeding $500 million in total value. Retail investors expressed dissatisfaction, claiming that large institutions have intervened and manipulated the market, especially as Bitcoin experienced a sudden sharp sell-off early this morning.

Furthermore, macroeconomic risks are casting a shadow over the crypto market, as US CPI data is expected to be released on Thursday and the Bank of Japan’s interest rate decision on Friday, which could trigger even more volatility.

On the technical side, the weakening trend of PUMP, SPX, and TAO is likely not over. Momentum indicators continue to signal negative, reflecting that selling pressure still dominates and raising the risk of a short-term downtrend.

Pump.fun May Break Out of Falling Wedge Pattern

Pump.fun continues to face selling pressure, dropping nearly 2% at the time of writing on Thursday, extending the previous session’s 10% decline. This meme launchpad token is now approaching the support line formed from the lows on November 17 and 21, within a falling wedge pattern structure – a sign that the negative trend still prevails.

In a negative scenario, if PUMP closes decisively below the S1 Pivot Point at $0.002, the market could confirm a clear breakdown. In that case, selling pressure is likely to push the price back down to the lower support zone near the October 10 low around $0.001496, or even S2 Pivot Point at $0.001051.

Daily PUMP/USDT chart | Source: TradingView From a momentum perspective, the daily RSI indicator is falling to 29, indicating oversold conditions. However, the recovery signal is not yet convincing as the MACD line crosses below the signal line and continues to widen in the negative zone since Monday.

Conversely, if buying interest emerges to catch the dip, PUMP could see a technical rebound toward the upper trendline, connecting the highs on September 14 and November 11, around $0.003. However, for a sustainable reversal, the market still needs additional confirmation from volume and price momentum.

SPX6900 Faces Risk of Deeper Correction

SPX6900 continues to face strong selling pressure, dropping nearly 2% at the time of writing on Thursday, after a deep plunge of 12% in the previous session. With the current development, the most probable scenario is that the price will continue sliding toward the November 21 low around $0.4375, representing an additional decline of about 8%.

Daily SPX6900/USDT chart | Source: TradingView From a technical standpoint, the RSI indicator is retreating to 34 and shows no signs of forming a bottom, indicating that selling pressure is overwhelming and the market is approaching oversold territory. Meanwhile, both the MACD and signal lines are maintaining a downward trend, reflecting increasingly strong bearish momentum.

On the other hand, if SPX experiences a technical rebound, the upward movement is likely to encounter resistance at the 50-day EMA, which is trending downward, around $0.6845 – a notable short-term resistance level.

Bittensor Accelerates Downtrend

Bittensor continues its five-session losing streak as the price breaks through the critical $250 level. At the time of writing, this AI token has declined nearly 3% on Thursday, following a sharp 9% drop in the previous session, indicating that selling pressure remains intense.

Daily TAO/USDT chart | Source: TradingView From a technical perspective, the nearest support zone for TAO is identified at the April 16 low around $222, before retreating further to the psychological $200 level. Similar to PUMP, the RSI has fallen into the 30 zone, reflecting a clear oversold condition, while the MACD line still signals a negative trend after crossing down on Wednesday.

Conversely, to open up significant recovery opportunities, TAO needs to quickly regain the $254 level – corresponding to the December 1 low – to weaken the current downtrend and improve market sentiment.