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- PUMP surged 90% in two weeks after confirming a bullish breakout.
- Analysts warn of possible short-term profit-taking despite bullish structure.
- Key targets remain $0.0060 and $0.0070 if $0.0040 support holds.
Pump.fun (PUMP) has captured market attention with a 90% rally over the past two weeks, supported by strong buying pressure at critical levels. The token recently broke out of a double bottom pattern near $0.0039–$0.0040, confirming a bullish setup that propelled it higher.
At press time, PUMP trades at $0.004604 with a market capitalization of $1.63 billion and a 24-hour trading volume of $653.48 million. Despite the impressive rally, the token slipped 1.77% in the last 24 hours, raising questions about whether short-term profit-taking could emerge.
Analysts Highlight Profit-Taking Signals
According to crypto analyst Ali Martinez, while PUMP’s 90% surge is remarkable, the TD Sequential indicator is flashing a potential short-term sell signal, suggesting some traders may look to lock in gains soon.
Another analyst, Alfa Crypto Signal, noted that PUMP has followed its projected path closely, with buyers stepping in during the retest of the $0.0040 level to confirm the bullish breakout. This resilience has helped PUMP maintain higher lows, a classic indicator of continued bullish strength.
Key Levels: $0.0060 and $0.0070 Targets
As long as PUMP trades above its $0.0040 support, analysts believe bulls remain firmly in control. The next upside targets are $0.0060 and $0.0070, provided momentum continues.
However, market activity is cooling. Trading volume has dropped 20.73% to $969.77 million, while open interest declined 3.31% to $621.08 million. This suggests fading short-term optimism and reduced leveraged exposure, indicating investors may be waiting for stronger signals before entering new positions.
The OI-Weighted ratio remained steady at 0.0078%, signaling that leverage has not increased despite recent price swings.
Bulls in Control, But Caution Ahead
Pump.fun (PUMP) is enjoying a powerful uptrend, with higher lows and confirmed bullish structures supporting further growth. Yet, declining volume and open interest hint at investor caution, while technical indicators flag potential short-term profit-taking.
If PUMP holds above the $0.0040 support, it could rally toward $0.0060 and $0.0070, solidifying its bullish case. For traders, the key lies in balancing optimism with awareness of possible corrections.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
