Key Takeaways
What signals a potential rebound for Pump.fun despite recent price stagnation?
Whale accumulation and a bullish RSI crossover suggest growing confidence and possible upward momentum.
What could prevent PUMP from breaking above $0.0045?
Persistent retail selling and weak directional strength may stall the rally and push the price back to $0.0034.
Since the crash on the 11th of October, Pump.fun [PUMP] has remained stuck within a thin margin. As such, the altcoin has traded between $0.003 and $0.0045.
In fact, at press time, PUMP was trading at $0.0041, up 10.3% over the past 24 hours. Amid this market cooldown, investors, especially whales, have made a strong comeback.
Pump.fun’s whale activity soars
After PUMP dropped to $0.0034 support, investors, especially whales, rushed into the market to defend it.
According to Nansen, PUMP’s top holders bought 4.4 billion tokens over the past 24 hours. As a result, the altcoin’s large holders have recorded a positive Balance change for three consecutive days.
Over this period, PUMP’s Whale Net buy has surged to 4.6 billion tokens, a clear sign of an increased accumulation rate.
Source: Nansen
Amid this whale reawakening, Onchain Lens reported one such transaction. According to the on-chain monitor, a whale withdrew $2 million in USDC from Kraken and bought 517.97 million PUMP.
Usually, when whales turn to accumulation during weak market conditions, it signals confidence, and they view it as a perfect buying window.
On top of that, buyers have dominated the spot market. According to Coinalyze, Pump.fun has recorded a positive Buy Sell Delta over the past 24 hours.
Source: Coinalyze
Between the 23rd and the 24th of October, PUMP saw 12.17 billion in Buy Volume compared to 9.51 billion in Sell Volume.
As a result, the altcoin recorded a positive delta of 2.66 billion, a clear sign of aggressive accumulation.
Retail traders remain defiant
Unsurprisingly, as the market recovered, small-scale investors rushed to exchanges to cash out. According to CoinGlass, Pump.fun has recorded a positive Spot Netflow for two consecutive days.
Source: CoinGlass
At press time, Netflow was $1.9 million, a significant drop from $5 million the previous da,y indicating higher inflows.
Historically, increased exchange outflows have preceded lower prices, as downward pressure on the asset rises.
Is whale-driven rebound a possibility for PUMP?
According to AMBCrypto, PUMP signaled a recovery after whales entered the market to defend a key support level.
As a result, the altcoin’s Relative Strength Index (RSI) surged to 43, as of writing, signaling a bullish crossover, though it remains in bearish territory.
Source: TradingView
Typically, such a setup on RSI indicates buyers, although strengthening, are yet to displace sellers. Thus, bears remain active in the market.
Having said that, if buyers, especially whales, hold the current momentum, PUMP will breach $0.0045 and target $0.0052.
To maintain momentum, bulls need to overpower sellers, push the Directional Movement Index (DMI) above 17, trigger a bullish crossover, and hold it above 24.
If they fail, and retail investors continue to sell aggressively, Pump.fun could fall back to the $0.0034 support level.
