PUMP Is Down 15%, But Why Are Traders Betting $674 Million on It in the Futures Market?

• PUMP token ICO has been criticized as the last exit strategy by the developers.
• The Pump.fun platform faces an intense competition from BONK meme-backed LetsBONK.fun.
• PUMP price may drop further in the coming weeks, amid macro bullish outlook, before rebounding later.

After a much-hyped Initial Coin Offering (ICO) last weekend, the Pump.fun (PUMP) token is facing its first major test, with its price dropping over 15% in the last 24 hours to trade about $0.004355 on Saturday, July 19. But while the price chart is flashing warning signs, a massive surge of activity in the futures market suggests many traders are betting big on a recovery.

As a result, PUMP price has slipped below the listing price of $0.00543, according to market aggregate data from CoinGecko. However, PUMP price has yet to drop below the ICO price of $0.004, which is a major support level bolstered by the majority of the buyers.

Why the futures market tells a different story for PUMP

According to market data analysis from Coinglass, PUMP token has accumulated bullish aspects. For instance, the PUMP futures Open Interest (OI) has increased gradually from $104 million on July 11 to about $…

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