After hitting a new low two days ago, the Pump.Fun jumped nearly 30% to the key resistance level. When the token attempts to regain this area, analysts suggest that there may be a bottom in place, and a recovery rally is ongoing.
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Pumps watch roller coaster price action
On Thursday, Pump.Fun retested key levels after a recent struggle. The token has made headlines for its constant bleeding and has hit a new all-time low (ATL) over the past week.
In particular, the pump was launched on July 14th, with the price of the first coin product (ICO) surged by 70% from $0.0040, reaching an all-time high (ATH) of $0.0068 after two days. However, the disappointing update about the highly anticipated token airdrop, selling pressure from large investors, has stopped the fun.
Just a week after its release, Pump.Fun’s tokens fell below the ICO price and remained below the $0.0030 mark the next day. The cryptocurrency hit a $0.0028 ATL last Thursday after Aron Cohen, the platform co-founder, said pump airdrops would not be happening soon.
Since then, tokens have fallen even further, reaching a new low of $0.0022 on July 29th, down almost 70% from the ATH. Nevertheless, the pump attempted to surpass this range three times last week, also in the area range of $0.0024-$0.0029.
Over the past two days, Pump.Fun has surged nearly 30% from its low, surpassing its $0.0030 resistance for the first time in a week. The token surged 12% on Thursday to a high of $0.0032 each week before retreating from $0.0027 to an area of $0.0029.
Crypto analyst Altcoin Sherpa highlighted recent price action, suggesting that the pump has “some big, powerful moves these days,” and that breakouts and “favourite rallies” could soon be coming.
He previously predicted that the bottom would occur “relatively soon,” and could be followed by “some kind of Giga Crime Pump.”
Pump.Fun buyback to fuel recovery?
The recent recovery appears to be driven in part by the platform’s buyback program and whales’ renewed interest in tokens. Notably, a large investor who previously lost $125,000 on the pump bought $3.16 million worth of tokens on Thursday. Lookonchain shared that the whales will be using 17,542 SOL to purchase a $10.6 billion pump for $0.00297.
Meanwhile, a community member said, “Pumpfun has pivoted on what appears to be a 100% token buyback.. 98% of PumpFun/Pumpswap revenue yesterday ended up buying pumps today. ”
Similarly, on-chain thruce embercnb details that Pump.fun forwarded 12,000 Sol, about $2.16 million, to a buyback address on July 30.
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According to the report, Pump.Fun originally transferred 187,770 Sol, about $30.53 million, from its fee wallet to its repurchase address. Since then, the platform has repurchased 3.828 billion pump tokens for $21.5 million at 129,100 SOL.
Nevertheless, X users expressed concern about the initiative, asserting that “it is unstable.” For community members, inconsistent buybacks are “not good looking (…) first day (not exceeding revenue), 1m after a halt, then 100%, they just look at what gets attention and stop buying backs entirely.”
At the time of this writing, the pump is trading at $0.0027, with a 7% decrease in weekly time frames.
Unsplash.com featured images, tradingView.com charts
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