The PUMP price is currently trading at $0.0053, up nearly 40% in the past seven days. The token has gained more than 11% today alone, extending a sharp uptrend. On the surface, it looks like another runaway rally.
But traders know that big bursts often come with pullbacks or profit-taking. For PUMP holders, the key question is simple: can the rally stay above one critical level if the dip comes?
Money Flows Keep PUMP Rally Alive, But Show Signs of Cooling
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The Chaikin Money Flow (CMF), which tracks whether money is moving into or out of an asset, is holding positive at +0.07. That is not overly aggressive compared to past peaks, but still confirms inflows are steady.
Earlier this month, when PUMP traded lower, CMF was closer to +0.12.
The higher reading showed heavier conviction at lower prices. The current lower CMF on the daily timeframe suggests inflows remain supportive, but buyers are not pressing as hard at these higher levels.
If CMF can reclaim +0.12, it would confirm that larger buyers are still willing to add aggressively even at higher prices.
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The Money Flow Index (MFI), which combines price and volume, is in overheated territory, sitting above 90. Instead of pushing higher, MFI has slowed down.
This means traders are not chasing every dip. Often, this slowdown occurs when participants expect a rebound to provide better entry points, so dip buying can return once prices cool.
Taken together, CMF shows that money is still flowing in, while MFI signals patience. The inflows are keeping the rally intact, but traders may be waiting for a short pullback before stepping in again. That combination validates the risk of a small correction, while also hinting that fresh demand could reappear once the next dip is offered.
Liquidation Risks Make One Level Crucial
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The liquidation map shows just how unbalanced the market is. More than $15 billion in long positions have currently stacked up, while shorts sit near only $1.1 billion. That’s a massive tilt toward bullish bets expecting the rally to continue.
The danger is that if the PUMP price slips below $0.0051, these long positions start to get liquidated. A cascade of liquidations could then drag the price toward $0.0043, where the bullish structure would break down completely.
PUMP Price Chart Shows Strength, But RSI Warns of Pullback
On the 4-hour chart, Pump.fun trades within an ascending triangle, a bullish setup where higher lows continue to push against a strong resistance line. For the rally to extend, a 4-hour candle close above $0.0054 is needed.
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This could open targets near $0.0057 or even $0.0061.
The Relative Strength Index (RSI), a momentum gauge on a 0–100 scale, recently displayed a hidden bullish divergence: the price formed a higher low while the RSI formed a lower low. This helped fuel the latest surge.
But RSI has now reached its highest level since PUMP launched, signaling overheated conditions. For traders, that usually means some pullback is likely.
If the PUMP price holds $0.0052 during the period, the bullish structure stays intact as the long liquidations won’t kickstart. But under $0.0050, the PUMP price setup could quickly become primed for a collapse.
The bullish structure only breaks if the PUMP price goes under $0.0043, aligned with the earlier liquidation map and the price chart.
Source: https://beincrypto.com/pump-price-rally-critical-risk/