PUMP price surges 10% despite Pump.fun’s $142M token unlock – How?
The native token of Solana memecoin launchpad Pump.fun, PUMP, surged over 10% despite a massive token unlock event. Approximately 89 billion PUMP tokens, worth around $142 million, were unlocked for team members and existing investors starting July 12th. By the time of writing, $76 million worth had been distributed. Contrary to expectations of selling pressure, the token price rallied 11%, partly driven by a broader market relief bounce following softer U.S. inflation data.
However, significant risks remain. The unlocked supply is 18 times larger than the project's current buyback pace of 5 billion tokens per month. Analysts warn that if recipients begin selling their tokens, the substantial supply overhang could pressure PUMP's price downward. On-chain data showed minimal selling from major wallets as of writing, but further distributions are expected. Technically, the price touched the upper Bollinger Band, with key support levels identified below. The rally's sustainability is uncertain pending potential sell-offs from the unlocked tokens.
ambcrypto07/15 11:02
