• Pump.fun is under heavy selling pressure, falling over 3% intraday to $0.00186.
• Weekly platform revenue dropped to $9.4 million for the week ending Sunday from $13.6 million.
• Pump faces a weak derivatives market, with futures Open Interest down to $155 million on Wednesday.

Pump.fun (PUMP) is extending its decline for the fifth consecutive day, trading at $0.00186 at the time of writing on Wednesday. Low platform revenue, fees and a weak derivatives market are among the factors weighing on the meme coin launchpad and trading platform.

Pump.fun retail interest, platform revenue dip 

The dominant risk-off sentiment continues to keep traders on the sidelines, narrowing investor sentiment, as derivatives weaken. Pump.fun futures Open Interest (OI) holds around December lows of approximately $155 million on Wednesday, down from $162 million the previous day. 

In contrast, OI expanded to a record $1.23 billion in mid-September, around the time PUMP hit a new all-time high of $0.00900, undermining retail interest. The steady decline in the futures OI suggests that investors lack confidence in PUMP's short-term outlook and are unwilling to open new positions.

Pump.fun's platform revenue, on the other hand, has declined to $9.4 million for the week ending Sunday, from $13.6 million, indicating that meme coin trading activity has slowed, mirroring the headwinds in the broader cryptocurrency market. 

The weekly revenue averages $2.6 million so far this week. Pump.fun channels most of the platform's revenue into the token buyback program, designed to reduce supply and support PUMP's long-term growth. 

Despite the token buyback program, frequent token unlocks increase the circulating supply. On Tuesday, 10 billion PUMP tokens, worth approximately $20 million at the time, were released, adding downside pressure amid broader bearish sentiment in the crypto market.

Technical outlook: PUMP sell-side pressure deepens, approaches key support 

Pump.fun edges lower toward support, tested on Friday at $0.00167, while the 50-day Exponential Moving Average (EMA) at $0.00246, the 100-day EMA at $0.00277 and the 100-day EMA at $0.00355 limit the upside. All three moving averages are sloping downward, upholding a bearish momentum bias.

The Relative Strength Index (RSI) is declining to 36 on the daily chart, reinforcing the bearish thesis. A further drop into oversold territory could accelerate PUMP's downtrend, pushing it below the $0.00167 support.

Moreover, the Moving Average Convergence Divergence (MACD) indicator remains below the signal line on the daily chart, reinforcing the bearish outlook and prompting traders to close long positions in favour of selling PUMP. Below the immediate support at $0.00167, PUMP may drop toward $0.00100.