Key Takeaways
The Pump.fun ICO saw the PUMP token reach staggering valuations. However, as the rest of the crypto market climbs higher, PUMP looked set to rally too. It managed to flip the short-term resistance at $0.006 from resistance to support.
Pump.fun [PUMP] token, at press time, was already at a $2.33 billion market cap. With only 35.4% of the total supply in circulation, its fully diluted value may be a much bigger $6.58 billion. The high valuation saw the token enter the top 65 by market capitalization on CoinMarketCap, and it was ranked 44th at the time of writing.
The Pump.fun ICO for the PUMP token was sold out in 12 minutes on Saturday, 12 July. The offering raised $600 million, and combined with the private sale, could bring the proceeds to $1.32 billion.
Bullish conviction reigns supreme for PUMP… at least for now
The Open Interest behind PUMP increased by 8.85% over the past 24 hours. This might be a signal of bullish conviction in the short term. In fact, Coinalyze data further revealed an aggregated OI of $937.7 million at the time of writing – A whopping figure for a newly launched token.
Source: PUMP/USDT on TradingView
The 30-minute chart highlighted a firmly bullish outlook. The $0.006 region, marked in purple, was a short-term resistance in the last 24 hours. The buyers drove the token beyond this supply zone. The breach of this resistance was followed by its retest as support, before it rallied by another 13% in just four hours.
However, the RSI signaled a bearish divergence. It made a lower high while PUMP’s price made a higher high, closing a 30-minute candle at $0.0068.
Within an hour of the development of this divergence, Pump.fun token retraced by 2.7% on the charts. It could be building up a base at the $0.0065 area before making its next impulse move higher. Finally, the uptrend on the OBV pointed towards buyer dominance and steady, sustained buying pressure.
Overall, the short-term price action looked promising for PUMP. The long-term effects of the memecoin launch platform will be debated by crypto participants for a while.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
