The market is adjusting, with 3 altcoins leading the profit-taking wave.

Pump.fun (PUMP), Story (IP), and Pudgy Penguins (PENGU) are experiencing a strong sell-off wave over the past 24 hours, indicating that market sentiment remains cautious. Both PUMP and IP are powerless against the important resistance level of the 50-day exponential moving average (EMA), triggering a correction phase on Wednesday’s trading session. Meanwhile, PENGU is retreating to test the 50-day EMA, reflecting ongoing profit-taking pressure. Overall, the technical outlook for these three cryptocurrencies remains negative, as the downward trend continues to dominate amid existing weakness.

Pump.fun faces the risk of sharp decline as bullish momentum wanes

As of Thursday when this article was written, Pump.fun is fluctuating around the 20-day EMA at $0.002248, after plunging 11% from the 50-day EMA at $0.002624 in the previous session. This move officially ends the eight consecutive bullish sessions for the token.

If PUMP loses the support zone at $0.002248, selling pressure could increase, pushing the price down to the psychological level of $0.002000. Further, the correction risk may extend to the S1 Pivot point at $0.001262.

Daily PUMP/USDT chart | Source: TradingView The technical signals on the daily timeframe are warning of weakening demand. The RSI is currently at 51 and trending downward toward the neutral line, reflecting fading bullish momentum. At the same time, the MACD indicator continues to move sideways, with green histogram bars narrowing significantly, indicating a clear decline in bullish strength.

Conversely, if a recovery occurs and PUMP successfully breaks above the 50-day EMA at $0.002624, the price could regain upward momentum and target the resistance zone at the Pivot R1 point, around $0.002983.

Story faces a critical crossroads at the $2.00 mark

As of Thursday when this article was written, Story (IP) is hovering around the $2.00 level, marking its third consecutive decline. The price dropped 2% during the day, following a 4% decrease in the previous session, increasing correction pressure and putting this coin at risk of losing the 20-day EMA at around $1.91.

In a negative scenario, if IP breaks below the support level of $1.91, the decline could extend to the S1 Pivot point near $1.22.

Daily IP/USDT chart | Source: TradingView Similar to PUMP, the technical indicators on the daily timeframe show that buying momentum for Story is weakening significantly. The RSI is currently at 53 and gradually approaching the neutral zone, while the MACD is nearing the signal line, increasing the risk of a bearish crossover — a sign that the correction trend may resume.

On the other hand, to restore bullish prospects, IP needs to decisively break above the 50-day EMA at $2.33. If successful, the price could target the Pivot R1 point around $2.41.

Pudgy Penguins at risk of losing the 50-day EMA

Pudgy Penguins remains resilient above the 50-day EMA at $0.01179, despite a sharp 9% correction on Wednesday. As of this writing, PENGU is fluctuating around $0.01200, close to the short-term resistance at the Pivot R1 level of $0.01193.

However, if the price loses this support zone, selling pressure could increase, pushing PENGU back to test the 20-day EMA at $0.01091 — near the important psychological level of $0.01000.

Daily PENGU/USDT chart | Source: TradingView Similar to PUMP and IP, the technical signals on the daily timeframe indicate that Pudgy Penguins’ buying momentum is weakening, implying short-term risks of correction.

In a more positive scenario, if demand returns, PENGU could initiate a recovery toward the next resistance zone at the Pivot R1 level of $0.01518.