Pump.fun rallies 10% – Traders, more upside ahead IF…

Key Takeaways

Why did Pump.fun rise again?

Padre’s acquisition and $440 million Open Interest boosted confidence as DEX Volume jumped 12% day-on-day.

Is PUMP’s rally sustainable?

Heavy liquidity clusters below the price indicate a short-term pullback remains likely before another leg upward.

Pump.fun [PUMP] rose 10% in the last 24 hours, maintaining a steady uptrend. The rally followed the project’s acquisition of Padre, a trading platform with $1 billion in lifetime volume and $10 million in fees.

On-chain users show commitment

Investors renewed confidence in PUMP as Total Value Locked (TVL) climbed sharply during the acquisition window.

Roughly $10 million in PUMP was deposited for long-term yield, bringing Pump Token Holder Net Income since the 1st of October to $29.4 million, according to DeFiLlama.

Source: DeFiLlama

The decentralized exchanges (DEX) have also witnessed a major surge in usage over the past day, reaching $268.9 million in volume.

A continued rise at this pace could build on last week’s strong performance, when trading volume peaked at $1.85 billion, according to market analysis.

Perpetual market activity boosts momentum

The perpetual market has seen a large inflow from investors, reflected in a notable surge in open contracts.

Data from CoinGlass showed a $37.5 million daily rise in Open Interest, lifting total futures exposure to about $440 million.

Source: CoinGlass

This surge in contracts could easily tilt toward the bullish side, given that price performance has been trending upward.

However, AMBCrypto analyzed other market indicators to assess potential direction. The Taker Buy/Sell Ratio showed that taker buys dominated the market.

Taker buys imply that there is more buying volume than selling volume. At press time, the ratio read 1.05, confirming this ongoing bullish trend.

A potential downturn ahead?

Despite the ongoing bullish momentum, market data suggested that a correction could occur. Because the surge in PUMP did not show a perfect correlation with the Liquidation Heatmap on the chart.

The liquidation chart showed a large unfilled liquidity cluster below the recent price level, indicated by different color shades, with only a few clusters above.

Source: CoinGlass

Such patterns often attract price retests as market liquidity “magnets.” A move toward those lower bands could trigger a short-term pullback.

Still, short traders have absorbed $2.3 million in liquidations over the past day, keeping momentum tilted toward bulls for now.