Risk-Off Mood Pressures Meme and AI Tokens as Sellers Dominate

Key Moments

Market Overview

Pump.fun (PUMP), SPX6900 (SPX), and Bittensor (TAO) are posting some of the largest declines in the crypto complex over the last 24 hours, coinciding with more than $500 million in total liquidations across the market. Within the retail community, traders are pointing to what they describe as a recurring early-morning Bitcoin sell-off pattern in the US session and alleging institutional involvement in the move.

Market participants are also focused on upcoming macro events, with US CPI data scheduled for Thursday and the Bank of Japan’s rate hike decision expected on Friday, developments that could add another layer of volatility to digital assets.

From a technical standpoint, selling pressure in PUMP, SPX, and TAO has intensified, and trend and momentum readings indicate that the current bearish tone could persist.

Pump.fun Approaches Key Support Within Falling Wedge

Pump.fun is trading nearly 2% lower at press time on Thursday, deepening the 10% slide recorded in the prior session. The token that underpins the meme coin launchpad is drifting toward a support trendline that joins the November 17 and November 21 lows, forming part of a falling wedge configuration.

A firm daily close below the S1 Pivot Point at $0.002000 would constitute a confirmed bearish break of this setup. Should that occur, the ongoing decline in PUMP could look for support first at the October 10 low at $0.001496, followed by the S2 Pivot Point at $0.001051.

Momentum signals underscore the weakness. The Relative Strength Index (RSI) on the daily chart stands at 29, placing PUMP in oversold territory. At the same time, the Moving Average Convergence Divergence (MACD) line and its signal line have both turned lower into negative territory after a crossover on Monday.

On the upside, any relief rally or rebound in PUMP would likely target the descending trendline that connects the September 14 and November 11 highs, located near $0.003000.

SPX6900 Faces Prospect of Deeper Pullback

SPX6900 is lower by almost 2% by press time on Thursday, after dropping 12% on Wednesday. Price action suggests the path of least resistance remains to the downside, with traders eyeing the November 21 low at $0.4375. From current levels, that implies additional downside potential of nearly 8%.

The RSI, currently at 34, continues to move lower and is nearing oversold territory as selling interest builds. In parallel, both the MACD and its signal line are trending down, highlighting an acceleration in bearish momentum.

If SPX stages a short-term bounce, the falling 50-day Exponential Moving Average (EMA) at $0.6845 would likely be the first notable resistance level.

Bittensor Extends Losing Streak Below $250

Bittensor has now declined for five consecutive sessions, having dropped below the $250 threshold. At the time of writing, the AI-focused token is down nearly 3% on Thursday, compounding the 9% loss recorded the day before.

Immediate technical support for TAO is located at the April 16 low of $222, with an additional reference point at the $200 psychological level beneath that.

Mirroring the signals seen in PUMP, the RSI reading for TAO is at 30, indicating oversold conditions. The MACD continues to flash a sell signal following a crossover that occurred on Wednesday.

For sentiment to turn more constructive and a recovery to gain traction, TAO would need to climb back above the December 1 low at $254.