Pump.fun Experiences 16% Surge Amid Strong Demand and Token Buyback
Pump.fun Sees Price Increase
Pump.fun successfully maintained the $0.003 support level, rebounding from a dip to $0.0025 and achieving a high of $0.0033. At press time, the token traded at $0.003291, marking a 16.32% increase supported by a 40% rise in trading volume.
Consistent Buyer Dominance
Despite a broader downturn in altcoin inflows, Pump.fun has seen steady demand. Coinalyze data shows buyers dominated the market on 18 of the past 30 days, resulting in a positive Buy Sell Delta in December.
The spot Buy Volume hit 20.18 billion, surpassing the Sell Volume of 17.86 billion. This led to a Buy Sell Delta of 2.32 billion, signaling strong market accumulation. Exchange holdings of PUMP also dropped from 38 billion to 33 billion over two weeks, indicating a reduced circulating supply.
Impact of Token Buybacks
Pump.fun's resilience was bolstered by the team’s token buybacks, spending $1.15 million recently and totaling $195 million. This removed 45.5 billion tokens from circulation, creating a deflationary environment that stabilized market sentiment.
Market Momentum Indicators
Increased buybacks improved short-term momentum. The Stochastic Momentum Index rose from -2.2 to 39, indicating higher buyer engagement, while the Relative Vigor Index climbed to 0.165, confirming market strength. If accumulation continues, PUMP may retest $0.0037 or target $0.004, though profit-taking could drive it back to $0.0028 support.
Final Thoughts
- PUMP's price surged 16.32%, maintaining $0.003 support and reaching $0.0033.
- Token buybacks, totaling 45.5 billion worth $195 million, fueled strong demand.