Pump.fun rockets 12% – Bulls eye $0.0041 as mixed signals emerge

Key Takeaways

Pump.fun rebounded 12% after holding $0.0032, backed by positive Funding Rates and a 2.36 Long/Short Ratio. Will PUMP sustain momentum above $0.0041 resistance?

Pump.fun [PUMP] rallied 12.09%, hitting a 2-week high of $0.00386 after holding support at $0.0032.

At press time, PUMP retraced to $0.003743. Over the same period, volume surged 76% to $290 million, signaling strong inflows.

Demand for Pump.fun soars

After sellers dominated the market towards the end of August, the memecoin declined from $0.0037 to $0.0032. 

Naturally, when Pump.fun hit those lows, buyers returned to scoop up the dip. As such, the market recorded a positive Delta between the 1st and the 2nd of August. 

Source: Coinalyze

In fact, Coinalyze data showed 3.1 billion Buy Volume vs. 2.7 billion Sell Volume, leaving a positive Delta of 400 million PUMP tokens. That signaled aggressive spot accumulation.

Futures sentiment turns even more bullish

The derivatives market leaned even stronger toward the bulls. According to Santiment, Pump.fun’s Funding Rates stayed positive all week.

Source: Santiment

At press time, the memecoin’s rate was 0.005% indicating sustained bullish sentiment in the Futures market. Usually, a positive Funding Rate reflects traders paying premiums to hold longs.

Source: Coinalyze

Moreover, Coinalyze showed Pump.fun’s Long/Short Ratio at 2.36, up from an average of 1.96. Long positions made up 70.27% of accounts, while shorts held 29.73%.

Profit realization on the rise

Interestingly, when Pump.fun dipped, Spot Netflow hit -$6.29 million, confirming heavy accumulation at lower levels. On top of that, as prices rebounded, traders began realizing profits.

Source: CoinGlass

According to CoinGlass, PUMP recorded two consecutive days of positive Netflow, reflecting inflows as holders offloaded tokens. At press time, Netflow stood at $1.19 million, highlighting aggressive selling flows.

Momentum indicators show mixed picture

According to AMBCrypto’s analysis, Pump.fun’s rebound was matched by momentum signals. The Stochastic RSI surged to 92 after a bullish crossover, showing strong buying pressure.

Source: TradingView

However, despite the strengthening uptrend, the positive index of the Directional Movement Index (DMI) had yet to make a bullish crossover at press time.

To validate the strength of the uptrend, DMI must also make a bullish crossover. 

If that happens, Pump.fun could test $0.0041 resistance. However, failure to hold momentum may drag PUMP back toward the $0.0032 support.