PUMP has surged 30% in the past 24 hours, grabbing notice amid a broader market downturn. While most digital assets continue falling in the ongoing crypto market downturn.
A technical breakout above the declining resistance line on July 29 also confirmed the end of the correction, and the token is heading towards the $0.0040–$0.0046 range for a relief move and has supportive indicators.
Bullish momentum builds above support
PUMP/USDT six-hour chart is still bullish with the RSI above 50 and the formation of a bullish divergence pattern. These charts indicate an upside movement. However, market onlookers remain skeptical and wonder if this is the start of the five-wave uptrend or a small-scale A-B-C correction.
PUMP is currently trading around $0.003195, and its market cap is now $1.13 billion. Volume was up to $630.5 million, and the open interest of the futures was up to $507.55 million after a 38.5% advance. These figures indicate rising trader confidence as Pump.fun tries to take on its bullish form and keep key support levels.
Technically, the infrastructure of Pump.fun is still shaky. The token continues swinging between important support within the range of $0.0024–$0.0026. Breaking below $0.0023 could stimulate panic selling and render the price plummet to the risk zone of $0.0018. This is the high-risk point of failure for the bulls.
Pump buyback drives renewed market activity
Analysts predict that Pump.fun has just authorized an aggressive buyback plan and uses 100% of the fees daily, approximately $210,000, to purchase PUMP tokens back. 12,000 SOL or $2.16 million was used on this function last July 30th. This plan is the reason behind the resurgent demand and surging market activity.
After a 92% revenue plummet since January, the buyback program is a risky reversal plan. The analysts cite this action for spurring the volume and buying activity surge. The revenue is being directed to support token value, and the platform is now putting its money on sustainable growth in the face of volatility.
Since its all-time top of $0.012, PUMP dropped 81% to the lowest level of $0.0022. The fall gathered pace thereafter after the co-founder’s airdrop announcement delays. The latest breakout, on the other hand, turned the earlier resistance into support and became the genesis of the current rally and relief move upwards.
