- Pump.fun (PUMP) is showing extreme bullishness on the daily technical chart.
- PUMP price has surged by 13% in the last 24 hours, suggesting buying momentum.
Pump.fun (PUMP) has shown a remarkable technical power after a massive rally that pushed the token up by 13%, which was backed by a massive buyback. The aggressive buyback program of the platform, with the amount of $19 million, which bought 2.99 billion PUMP tokens worth 118,000 SOL, has become a strong driver of the current bullish trend. Moreover, as per CMC data, token daily trading volume was also increased by 65% suggesting bullishness.
The most prominent technical development is the creation of a golden cross between the 20-day and 50-day EMAs. This bullish crossover pattern is normally considered to be the start of a long-term bullish trend. The price action has clearly pushed above both EMAs, and this shows that there is a strong buyer interest and a change of momentum to a bullish sentiment. The existing price of $0.003326 is very comfortably above these important moving averages, implying that the breakout is not an empty one.
Technical indicators are unanimously in favour of the bullish thesis. The Relative Strength Index (RSI) is now in the positive range at 67.15, and this means that there is a strong momentum, but not overbought. Such positioning implies that there is the potential of additional upside prior to facing meaningful resistance. The MACD indicator is also positive, with the MACD line crossing above the signal line, which is an indication of the shift in momentum and a good indicator of further gains.
What Next For PUMP Price?
PUMP Volume analysis shows an impressive market participation as the trading volume increased by 65% to $554.09 million. This large increase in volume confirms the price action and shows that institutional and retail interest are growing. The resulting effect of the buybacks and the resultant increase in trading activity is a positive supply-demand dynamic.
The daily buybacks that are funded by the flow of revenue on the platform are a basic support system for the token price. But sustainability is tied to strong platform revenue and effective implementation of future updates. There is further bullish sentiment of possible PUMP-based trading rewards.
Technically, the near-term resistance is seen at the levels of $0.0035, whereas the support has been set at the 20-day EMA at the levels of $0.00295. The golden cross pattern, the positive momentum indicators, and the high volume indicate that PUMP has a good chance of further growth, but traders are advised to pay close attention to the sustainability of revenues and the evolution of the platform.
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