Pump.fun (PUMP): Can It Sustain Its 30% Rally?

Key Points

Optimism in Bitcoin (BTC) and Ethereum (ETH) markets positively influenced PUMP. PUMP broke past the $0.003 resistance, potentially setting up for a 20% rally.

Pump.fun's PUMP token experienced significant losses after peaking at $0.00689 on July 15. Over the next ten days, it declined by 66.58%, falling to $0.0023.

Following this drop, the token consolidated for a week. Despite neutral momentum on lower timeframes, PUMP broke past the $0.003 mark on July 31.

Bitcoin rebounded from the $115.8K support level, and Ethereum rose by 1.47% after retesting the $3.7K support.

The recent positive performance of Bitcoin and Ethereum could boost PUMP, potentially leading to a 20% increase.

Trading PUMP Now: Things to Consider

PUMP shows a bullish market structure on the 2-hour chart. After forming a range between $0.00245 and $0.003, it surged by 30%, breaking out of this range.

Currently, the price is retesting the $0.003 demand zone.

Retesting the $0.0029-$0.003 region could present a buying opportunity for PUMP traders. This strategy is based on short-term price action rather than the token's fundamentals.

Technical indicators suggest strong bullish momentum, with the OBV making a higher high and the RSI confirming the trend.

Potential price targets include the fair value gap at $0.0036 and the resistance level at $0.00378.

Disclaimer: This is not financial advice.

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