TLDR
- PUMP climbed 13% to $0.002909 after Wintermute accumulated $3.55 million worth of tokens
- The token broke through key resistance on charts, with potential for 12% to 55% further gains
- Investors withdrew $19.53 million worth of PUMP from exchanges over two weeks
- Buyback program removed nearly 3 billion tokens from circulation using $19.26 million
- Trading volume reached $400 million despite monthly decline of over 50%
Pump.fun price has posted strong gains over the past 24 hours, climbing 13% to reach $0.002909. The memecoin emerged as one of the day’s biggest gainers, outperforming major cryptocurrencies like Bitcoin and Ethereum.
The rally comes after weeks of selling pressure that saw PUMP drop more than 50% in the past month. Trading volume reached nearly $400 million, though 24-hour volume fell 10% despite the price increase.
Wintermute, a leading algorithmic trading firm, drove much of the recent buying activity. The company accumulated 1.24 billion PUMP tokens worth $3.55 million over 24 hours, sourcing the tokens from exchanges including Gate.io and Bybit.
The firm also rotated 1.01 billion tokens valued at $2.69 million through its liquidity wallet. This activity likely supports decentralized exchange liquidity or exchange deposits.
Technical Breakout Signals Momentum Shift
PUMP price broke through a key resistance level that had constrained the token along a descending trendline. The memecoin closed a four-hour candle above this level, confirming the breakout.
If current momentum continues, PUMP could rally 12% to reach $0.00332. A candle close above $0.0038 could trigger a larger 55% upside move.
The Supertrend indicator flipped green and moved below the price, confirming bullish sentiment. The token also moved above its seven-day exponential moving average around $0.00276, creating a short-term support level.
Exchange data reveals strong accumulation patterns among investors. Over the past two weeks, investors withdrew $19.53 million worth of PUMP from exchanges, suggesting potential buying pressure ahead.
Buyback Program Reduces Token Supply
Pump.fun’s buyback initiative has played a key role in the token’s recovery. Between July 16 and 30, the platform spent 118,351 SOL worth approximately $19.26 million to purchase nearly 3 billion PUMP tokens.
The buyback program escalated on July 31 when Pump.fun committed 98% of its daily revenue to ongoing purchases. This commitment triggered a 27% rally in a single day.
While the pace of purchases has slowed in early August, the reduced circulating supply continues to influence market dynamics. Around 354 billion PUMP tokens currently remain in circulation.
The token’s seven-day Relative Strength Index climbed from 28 to 33.15, indicating a shift from oversold conditions. This technical relief helped create favorable conditions for the recent bounce.
Traders have positioned themselves for further gains. Long positions worth $2.48 million sit between $0.00285 and $0.00302, while shorts in the same range total $1.81 million.
Solana’s memecoin ecosystem remains active despite competitive pressures. July saw 18 million new tokens minted on the network, driving higher platform fee expectations.
PUMP faces competition from rival LetsBONK.fun, which now holds an estimated 78% market share in the token launch space. However, broader altcoin market rotation into smaller-cap tokens has benefited PUMP.
The current market cap stands at roughly $1.06 billion, with the token maintaining its position among top gainers. Key liquidation levels below $0.0028 provided additional support for buyers during the recent rally.
