As the crypto market begins to recover, Pump.fun (PUMP) is strengthening its bullish outlook. Not due to a potential upside rally, but because major players are accumulating the token, further reinforcing this optimism.
According to Crypto tracker Onchain Lens, a crypto whale recently withdrew 1.34 billion PUMP tokens – Worth $3.31 million from OKX. This significant accumulation has increased the whale’s total PUMP holdings to 2.8 billion tokens. In face, the whale’s total holdings are now valued at $6.32 million.
Crypto whales, entities holding large portions of a token, often influence market trends. Their accumulation patterns are closely tracked by traders or investors searching for early rally signals.
Now, this whale’s massive accumulation of 1.34 billion PUMP tokens is raising questions about whether a major rally is on the horizon or if the whale has access to insider information.
PUMP’s price and rising volumes
At the time of writing, the accumulation spree’s impact was yet to be seen on the price front. PUMP was trading at $0.002491, up 1.05% over the past 24 hours. Meanwhile, there has also been a massive surge in participation, with trading volume jumping by 15% to $155.89 million.
A hike in volume is usually a sign that traders and investors are increasingly interested in PUMP and its prevailing trend.
A 30% rally on the cards?
On the daily chart, PUMP appeared to be forming a bullish inverted head-and-shoulders pattern. Its price had completed a single head and seemed to be forming another shoulder too. If this pattern is confirmed, the next few days could see a strong upside rally on the charts.
Beyond that, PUMP has been receiving support at $0.00242 – A key level that has a history of reversals.
Based on the altcoin’s price action, if the asset sustains above this key support, it could see a 30% price jump in the coming days. Just like in the past. And, it may reach the $0.0033-level.
Worth pointing out, however, that the technical indicator Average Directional Index (ADX) was flashing a red flag.
The ADX had a reading of 19.96, below the key threshold of 25 – A sign that the asset’s momentum was pretty weak across the board.
Traders’ eyes on long-leveraged positions
Despite bearish signals from technical indicators, derivatives data from Coinglass suggested that traders remain strongly positioned for an upside move.
Intraday traders seemed to be overleveraged at $0.00235 on the downside and $0.00256 on the upside. At these levels, traders built $2.68 million worth of long-leveraged positions and $1.98 million worth of short-leveraged positions, highlighting the prevailing market sentiment.
Final Thoughts
- A crypto whale added 1.34 billion PUMP tokens to its wallet, increasing its total holdings to 2.8 billion.
- PUMP has the potential to soar by 30% in the coming days, but only if it sustains above the $0.00242-level.
