$PUMP Rising Against the Trend! Is it a fleeting moment or a buildup for the future?
1. Whales' Large Purchases
In addition to platform buybacks, the large purchases by whales have also provided strong momentum for the rise of PUMP. According to on-chain data platform Lookonchain, a whale who previously lost as much as $125,000 from PUMP made an unexpected move at the end of July—"returning to the battlefield"—by heavily investing $3.16 million in PUMP, with a purchase price of about $0.00297. Whales often serve as a barometer in the cryptocurrency market, and their every move is closely watched. When whales buy PUMP in large quantities, the market tends to believe they possess some undisclosed positive news or have extremely optimistic expectations for PUMP's future development. This psychological expectation can attract more investors to follow suit, creating a positive feedback loop that pushes prices higher and higher.
2. Overall Market Recovery
It should not be overlooked that the recovery of the entire cryptocurrency market has also provided a favorable external environment for the rise of PUMP. Bitcoin (BTC) rebounded strongly from $115,800 to $118,900, while Ethereum (ETH) also rebounded 1.47% at the $3,700 support level. In the cryptocurrency market, Bitcoin and Ethereum act as stabilizing forces, and their price movements often have a profound impact on the entire market. When Bitcoin and Ethereum prices rise, the overall risk appetite of the market increases, and investors are more willing to allocate funds to other cryptocurrencies, including PUMP. This market driving effect allows PUMP to achieve price increases more smoothly under the push of its own positive factors.
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