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PUMP price dips 15% as Pump.fun offloads 2.5B tokens

  • The Launchpad has transferred PUMP worth around $9.19M to OKX.
  • The transaction sparked concerns about market confidence and bearish pressure.
  • PUMP price plunged on the daily timeframe.

Digital currencies traded in the red on Monday as Bitcoin and Ethereum dropped 2% and 3.20% after an early morning sell-off.

Meanwhile, PUMP grabbed attention as its significant decline coincided with a massive token transfer by meme crypto generator Pump.fun.

According to Lookonchain, the platform sent 2.5 billion tokens, worth approximately $9.19 million, to the OKX exchange, hours before the brutal slump.

The sizable transaction attracted analysts and traders, with many debating whether the move indicates an imminent sell-off.

Massive token deposits to an exchange often signal bearish pressure as the move increases the chances of dumping the assets into the market.

PUMP’s price has dipped from an intraday high of $0.003736 to $0.003172, a swift 15% decline.

The alt has erased its weekly gains as participants possibly exit to avoid further losses, as testified by the surge in daily trading volumes.

Why does the transfer matter?

PUMP’s price decline is more than a usual plunge in the volatile crypto market.

Pump.fun’s transaction accounts for one of the largest single PUMP transfers to an exchange.

Such a size generally sparks questions about the motive.

Is the platform preparing a substantial liquidation, a treasury plan, or a distribution?

Massive deposits to trading platforms trigger uncertainty among traders and holders.

Such sentiments precede panic selling.

The sharp price dip indicates the sensitivity of meme’s valuation to abrupt supply shocks.

Rather than boosting community trust after confirming no airdrop soon, the team is offloading the native token.

Nevertheless, the transfer could indicate a strategic move by Pump.fun, and not an immediate dump.

For instance, the 2.5 billion tokens could bolster liquidity within OKX for enhanced trading access and adoption.

PUMP sentiments take a hit

Meme coins thrive on community trust and hype. PUMP has performed well in the past few sessions as whales joined.

However, their confidence faces a test.

PUMP’s sudden 15% drop has catalyzed heated conversations on social forums.

Some find it ironic that Pump.fun completed buybacks only to offload within weeks, while others equate the meme Launchpad to the fallen FTX exchange.

On-chain data confirm the fading optimism.

For example, Coinglass data shows the alt’s Open Interest has declined by 6.41% to $443.79 million.

That means more traders are exiting positions than executing new ones.

PUMP price outlook

The coin trades at $0.003204 after brief recoveries from the daily low.

The 102% uptick in 24-hour trading volume suggests robust trader activity, possibly from individuals eager to prevent more losses.

Short-term technical indicators highlight the emerging bearish momentum.

The 3H MACD is plunging below the signal line, while the RSI depicts weakening strength after dipping from 56 to 38 over the past two days.

PUMP trades below the 50- and 100-Exponential Moving Averages on the 3H timeframe.

That shows bears control the alt’s current structure.

Moreover, the CMF has dipped into the negative region, confirming money flowing out of PUMP’s ecosystem.

The post PUMP price dips 15% as Pump.fun offloads 2.5B tokens appeared first on CoinJournal.

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Crypto leverage surges 27% to $53.1 billion, hitting highest level since early 2022

  • Crypto leverage surges 27% to $53.1 billion, its highest since early 2022.
  • A recent Bitcoin dip triggered a massive $1 billion liquidation of long bets.
  • Stress points are emerging in DeFi lending and key dollar markets.

A ghost from bull markets past is haunting the cryptocurrency landscape: massive, unrestrained leverage.

A speculative fever is once again gripping traders, pushing borrowing to levels not seen since the last cycle’s peak.

But as a brutal billion-dollar liquidation event last Thursday proved, this double-edged sword can carve out devastating losses just as quickly as it creates gains.

The scale of this renewed appetite for risk is staggering. According to Galaxy Research’s Q2 State of Crypto Leverage report, the market for crypto-collateralized loans swelled by an incredible 27% last quarter, reaching a total of $53.1 billion.

Powered by record demand in DeFi and a return to risk-on sentiment, this represents the highest level of leverage in the system since the precarious heights of early 2022. This mountain of debt created the perfect backdrop for the violent shakeout that was to come.

The inevitable spark: a billion-dollar wipeout

When Bitcoin retreated from its high of $124,000 to as low as 118,000 last week, the over leveraged system snapped.

The price drop triggered a cascade of liquidations across crypto derivatives, wiping out more than 1 billion in long positions—the largest such event since early August.

While many analysts were quick to frame the purge as healthy profit-taking, it served as a stark and painful reminder of just how fragile the market becomes when speculative bets build this rapidly.

Cracks in the foundation

According to Galaxy’s analysts, this fragility is not just theoretical; the stress points are already visible and spreading. In July, a wave of withdrawals on the lending platform Aave caused ETH borrowing rates to spike above Ethereum’s staking yields.

This seemingly small shift broke the economics of the wildly popular “looping” trade, where investors use staked ETH as collateral to borrow more ETH to stake again.

The sudden unwinding of these positions triggered a frantic rush for the exits, overwhelming the network and sending the Ethereum Beacon Chain’s exit queue to a record-breaking 13 days.

The trouble doesn’t end there. Galaxy has also flagged a growing and worrying disconnect in the dollar markets. Since July, the borrowing costs for USDC in the over-the-counter (OTC) market have been climbing, even as rates on DeFi platforms remain flat.

This has widened the spread between the two to its highest point since late 2024, suggesting off-chain demand for dollars is critically outpacing on-chain liquidity. It is a dangerous mismatch that could dramatically amplify volatility if market conditions tighten.

Beneath the deceptive calm of a market waiting for Fed Chair Jerome Powell’s next move, a different story is unfolding.

While institutional demand and ETF inflows paint a bullish picture, the system’s plumbing is showing more and more points of stress.

Last Thursday’s billion-dollar flush was not an anomaly; it was a warning that the return of leverage is a fire that can warm the market or burn it to the ground.

The post Crypto leverage surges 27% to $53.1 billion, hitting highest level since early 2022 appeared first on CoinJournal.