- PUMP has spent $138.1 million entirely on buyback and burn, showing long-term commitment to reducing supply and strengthening price floors.
- A short position near $0.00357 is active as price consolidates at resistance, with a stop-loss at $0.003614 and TP at $0.003237.
- A separate long-term order is placed at $0.002613, targeting $0.0089, suggesting possible bullish reversal from deeper weekly support levels.
PUMP has drawn trader attention after notable buyback activity and a complex technical setup. Recent price action and key trader positions signal a critical point for the asset.
Technical Setup Reveals Short-Term Risk
Trader @Learnernoearner recently posted a bearish chart setup for PUMP, eyeing a short near the $0.00357–$0.00362 zone. The asset broke above a key resistance level at $0.003556, but candles clustered tightly at this range. This shows indecision, despite bullish momentum along an ascending trendline.
The post outlines a short entry below $0.00357 with a stop-loss at $0.003614 and a take-profit target near $0.003237. A strong rejection at this resistance may cause a decline toward the next support, aligning with historical resistance and the 200-period moving average.
However, bullish divergence on OBV and immediate fib resistance around $0.00372–$0.00414 offer mixed signals. If the price reclaims this zone with volume, traders may see a reversal. Much of this may depend on BTC and ETH momentum in the broader market.
Long-Term Entry Placed Near Weekly Fractal Support
Another trader placed a long-term limit order at $0.002613, citing previous liquidity interaction on the weekly chart. While the price may bounce earlier around $0.0029, the position targets deeper liquidity.
This position is not based on leverage. Instead, it’s isolated in a separate sub-account, signaling a calculated long-term entry rather than active trading. The take-profit is placed at $0.0089, aiming for a 26x return if the move materializes.The setup suggests a sweep of lower liquidity before a potential rally.
Aggressive Buyback and Burn Strategy Raises Market Attention
According to recent CoinGecko data, PUMP has committed $138.1 million to buyback and burn between January 1 and October 15, 2025. This ranks it third overall, behind HYPE and ZRO. However, PUMP’s entire budget focused on reducing token supply, unlike HYPE’s pure buyback model.
This deflationary move has placed PUMP far ahead of well-known DeFi names like AAVE, GMX, and LINK in total spending. By removing tokens from circulation, the project signals long-term commitment to price stabilization and scarcity. Many investors view such measures as strategic, especially during market uncertainty or price consolidation phases.
Compared to HYPE’s $644.6 million spent only on buybacks, PUMP’s burn strategy suggests a different approach.
