Despite the slow rise of Bitcoin and Ethereum, PUMP, associated with the Pump.fun platform on Solana, has caught attention this week, rising more than 35% in just 7 days.
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💡 Key reasons behind PUMP's rise:
1. Strong rebound after sharp decline:
PUMP dropped to $0.002283 in late July, below the IPO price of $0.004.
The decline came after a massive hype at launch and reaching a fully diluted market cap exceeding $6 billion.
2. Announcement of buyback plan:
The platform has started daily buybacks of the token using platform profits.
More than $23 million worth of PUMP tokens have been purchased so far.
This decision supported confidence and pushed the price up again.
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📈 Current technical analysis:
3. Current price:
PUMP is trading at $0.0034, close to significant resistance between $0.0035 - $0.0040.
4. RSI (Relative Strength Index):
At 67, indicating strong buying momentum without saturation, suggesting the possibility of continued rise.
5. ADX (Average Directional Index):
It registers 27, indicating that the upward trend has started to form and is stronger than previous periods.
6. EMA Moving Averages:
EMA 50 is still below EMA 200 (negative crossover), but the gap between them is narrowing.
This could indicate an upcoming Golden Cross, a strong bullish signal if it occurs.
7. Squeeze Momentum Indicator:
It shows that the pressure phase has ended on the 4-hour timeframe, and we may witness a price explosion soon.
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📍 Important technical levels:
8. First support: $0.0030
9. Strong support: $0.0023 (psychological July low)
10. Current resistance: $0.003567
11. Next strong resistance: $0.004113 (important corrective target)
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✅ Overall rating:
The project succeeded in calming investor fears after the price collapse.
Technical signals are positive, and the upward momentum has clearly started to form.
As long as the market does not experience sudden volatility, PUMP may be in a consolidation phase before a new surge.
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⚠️ Important note:
This content is not financial advice. Always do your own research and do not risk more than you can afford.