PUMP’s market tug-of-war: Bulls load up, bears cash out

Key Takeaways

How are Pump whales influencing the market?

Whales accumulated 7.36 billion PUMP tokens, driving top holder supply to a record 94%, signaling strong bullish conviction.

What could derail Pump Fun’s recovery?

Profit takers have increased selling pressure, with sell volume surpassing buy volume, risking a drop toward $0.0077 support if it continues.

After rallying to $0.0089, Pump.fun [PUMP] faced a strong rejection, leading to a retrace, declining to a low of $0.0074. 

In fact, as of this writing, PUMP was trading at $0.0076, marking a 3.94% decline over the last 24 hours. Amid this price pullback, market players, both whales and retail, jumped into the market. 

Pump whales buy the dip

Interestingly, after PUMP retraced, investors, especially whales, started to buy the dip. According to Lookonchain, a whale purchased 1 billion pump tokens worth $8.5 million from Bybit. 

Source: Lookonchain

Another whale returned after exiting the market two days ago and purchased 426.43 million tokens for $3.2 million on Hyperliquid [HYPE], per On-chain Lens. 

Source: Nansen

Besides these two acquisitions, whales purchased 7.36 billion tokens on the 15th of September, according to Nansen.

As a result of this accumulation, Supply Held by Top Holders surged to a new all-time high of 944.5 billion tokens, accounting for 94%. 

Typically, such a spike in whale accumulation reflects firm conviction in the market, a clear bullish signal from the group. 

Sellers become increasingly active, too

Significantly, with PUMP near its ATH, investors are still within a profit-taking window. As such, whales, market participants, and retailers decided to cash out. 

According to Coinalyze, PUMP recorded 5.3 billion in Sell Volume compared to 4.79 billion Buy Volume on the 15th of September. 

Source: Coinalyze

Among these sellers, Lookonchain reported one whale. As per the on-chain monitor, a savvy trader sold 130 million PUMP tokens for $1.11 million to take a profit. 

As a result, Exchange Balance also spiked by 3.32% to 625.72 billion, indicating intense selling pressure.

Historically, increased selling pressure has resulted in intense downward pressure — a prelude to lower prices.

Uptrend or correction, what’s ahead?

According to AMBCrypto’s analysis, Pump retraced as profit takers jumped into the market. At the same time, the altcoin signaled recovery from the dip as whales bought it.

Therefore, this shows that bulls and bears are fighting for market control, leaving the altcoin at a crossroads.

Under these market conditions, if whale accumulation continues, they will strengthen the demand and see a potential recovery.

As such, Pump could reclaim $0.0089 and target to breach $0.01 resistance.

Conversely, if profit takers overwhelm the market, while whale momentum fades, the altcoin downside will continue towards $0.0077 support level.