The PUMP token price has recently experienced a period of volatility, with a significant drop from its recent highs. This has led to concerns about whether the September rally can continue. Despite efforts such as aggressive token buybacks and ecosystem growth, profit-taking by whales and weakness in the broader memecoin market have put pressure on the short-term outlook for PUMP crypto.
As of today, the PUMP price has fallen by more than 20% this week, with an intraday decline of 4.82% to trade at $0.0068. This is a notable drop from its peak of $0.0089, resulting in a market cap of $2.53 billion compared to its high of $3.31 billion.
Although PUMP is still up by 135% over the past 30 days, it is currently hovering near a key support level around $0.0067. Traders are closely monitoring this level to determine whether the recent decline is a temporary pullback or the beginning of a more significant correction.
The intensified selling pressure on PUMP can be attributed to smart whales locking in profits. Recent on-chain data has shown that large holders of PUMP have been selling off their holdings to secure substantial gains. For example, address 6AkVuG sold 466.74 million PUMP for $3.27 million, resulting in a 149% profit. Similarly, wallet 58teLV sold 272.24 million PUMP for $1.95 million, achieving a 133% gain.
This wave of profit-taking has contributed to a fragile sentiment surrounding PUMP, potentially pushing the token price to test lower support levels, such as $0.0049. The selloff aligns with the broader weakness seen in memecoins like Dogecoin, Shiba Inu, and PEPE, all of which have experienced double-digit declines in the last 24 hours.
Despite the recent pullback, the fundamentals of PUMP crypto remain positive. Pump.fun continues to allocate a significant portion of its platform revenue towards token buybacks, which has been a key driver of previous gains. Since July, over $97.4 million worth of PUMP has been repurchased, removing 7.051% of the circulating supply.
From a technical perspective, the September rally for PUMP began from a tilted double bottom formation. However, the current momentum faces a critical phase. If the token price can hold above $0.0067, there is potential for another attempt at the $0.01 target. On the other hand, a break below this support level could lead to a retest of deeper levels.
The future price prediction for PUMP hinges on whether buybacks can continue to counteract selling pressure and if there is a resurgence in speculative interest in the memecoin sector. With the recent rate cut by the Federal Reserve sparking a “meme coin hunting season,” there is a possibility of risk-on behavior providing the necessary momentum for a further price increase.
In conclusion, while PUMP remains highly volatile, it is essential for investors to evaluate their risk tolerance and monitor key support levels before considering entry during this period of market uncertainty.