Decoding PUMP’s 16% breakout – Is a run to $0.0068 possible?

Key Takeaways

PUMP’s rally blends whale buying, large-scale buybacks, reduced exchange supply and rising leverage. While momentum points toward $0.0068, shifts in funding could quickly alter the pace of this climb.

Pump.fun [PUMP] rallied 16.67% in the past day, at press time, as whales increased holdings and the project executed significant buybacks.

This created a strong upside momentum despite profit-taking from some investors. 

Whale wallets quietly added 2.3% to their positions while Smart Money trimmed 5% and public figures sold 14.5%. 

Source: Nansen

However, Pump.fun’s repurchase of 175.3 million PUMP—part of a broader 7.66B token, $30.65 million buyback—has amplified bullish sentiment. 

Source: Lookonchain

The move lifted the price from $0.00355 to $0.00404, signaling a demand shift that could soon challenge higher resistance.

Is this breakout the start of a bigger rally?

PUMP broke out from a multi-week accumulation phase between $0.00290 and $0.00355, riding higher volume.

As per the chart, the price traded above the upper Bollinger Band, with immediate resistance at $0.00468.

Source: TradingView

A sustained close above this level could open the path toward the next major target at $0.00681, aligning with prior swing highs. 

At the time of writing, RSI sat at 67.67, signaling strong buying pressure without yet breaching the overbought threshold, leaving technical room for further gains. 

Moreover, the breakout follows a period of compressed volatility, which often precedes extended trending moves. 

However, traders should remain alert for pullbacks to the $0.00419–$0.00400 zone, as retests of breakout levels are common before continued rallies.

Leveraged positioning rises as exchange supply tightens

Open Interest also surged 18.78% to $576.31 million, at press time, highlighting aggressive leveraged positioning. This can accelerate rallies but also heighten correction risk if liquidations trigger.

Spot Netflow data showed a $917.50K outflow on the 13th of August, meaning more PUMP left exchanges than entered.

Historically, such outflows have aligned with stronger price advances as shrinking exchange supply meets persistent demand.

Source: CoinGlass

Positive funding rates keep the bulls in control

Funding Rates across major exchanges hold at +0.007%, as of writing, showing long positions are paying shorts, a sign of bullish market control. 

This sustained positive funding indicates that traders remain confident in upward momentum, even after significant price gains. 

Combined with whale accumulation and large-scale buybacks, these conditions reflect a well-supported rally. 

However, prolonged positive funding without price advances can signal overheated conditions, making it critical to watch for shifts in this metric.

Source: Santiment

Can momentum hold toward $0.0068?

PUMP’s rally rests on four pillars: whale accumulation, massive buybacks, reduced exchange supply, and elevated leverage.

If demand persists and Funding Rates remain stable, the $0.0068 target is within reach.

Still, any shift in flows or leverage could slow the climb.