- $PUMP jumped 90 percent in two weeks as Pump.fun’s $12M buyback fueled demand but traders now eye sell signals cautiously.
- Technical charts show $PUMP holding near $0.0048 with support at A13 and resistance at C13 while profit-taking risks grow.
- Despite bullish momentum and strong retail hype, concerns over Pump.fun’s heavy influence raise doubts on $PUMP’s long-term sustainability.
$PUMP has soared nearly 90% in two weeks, but a fresh sell signal now raises concerns for traders. The token, currently priced at $0.004855, has seen gains that reignited market attention. However, analysts warn that profit-taking could soon follow as technical indicators flash caution.
The rally began after a steep decline from late August when $PUMP dropped to local lows near $0.002600. Strong bearish candles dominated trading sessions until August 28. Then, price action stabilized as smaller candles hinted at exhaustion in selling momentum. Hence, bargain hunters began accumulating tokens, creating a foundation for recovery.
From Stabilization to Aggressive Rally
Besides stabilization, the shift gained momentum between August 29 and September 3. Alternating candles signaled market indecision, yet buyers gradually gained strength. Consequently, consistent bullish candles pushed prices toward $0.004000 by early September. Moreover, volume spiked as enthusiasm returned, supporting the upward surge.
Source: Ali
The trend accelerated on September 4 and 5 when $PUMP broke through resistance zones. Larger bullish candles confirmed renewed momentum, sending the price to fresh session highs. As of September 6, $PUMP trades at 0.004787 USDT with daily gains of 3.35%.
Pump.fun’s Buying Spree Fuels Optimism
Additionally, on-chain data shows Pump.fun purchased over $12.1 million worth of $PUMP between August 28 and September 3. This accounted for 98.23% of its total revenue during that week. Moreover, the purchases offset 5.363% of the circulating supply, rising by 1.102% in just seven days.
However, the TD Sequential indicator now signals a sell. Consequently, some traders anticipate profit-taking may follow after such steep gains. Technical charts highlight support around A13 and resistance near C13, which will likely shape short-term market boundaries.
Market Sentiment and Outlook
Besides retail excitement, institutional attention also plays a role in sustaining momentum. However, $PUMP’s heavy reliance on Pump.fun’s buybacks raises questions about long-term sustainability.
$PUMP’s surge highlights explosive short-term potential. However, caution is vital as sell signals and profit-taking risks loom after rapid gains.
