Whales rule the PUMP market: But can they keep bears at bay?

Key Takeaways

PUMP rallied 31%, reaching a high of $0.008456 before slightly retracing to $0.0082 at press time. Whales scooped up 3.24 billion tokens, with Buy Volume rising to 17 billion.

Pump.fun [PUMP] soared 31% reaching a new high of $0.008456 before slightly retracing to $0.0082 at press time. 

Over this period, the memecoin’s market cap surged 23% reaching a new ATH of $2.8 billion, while volume jumped 47% to $904 million. 

Often, when these two surge in tandem, it signals steady capital inflow and growing on-chain activity. 

Buyers dominate the market

As PUMP rallied, buyers jumped in to chase the uptrend. According to Coinalyze, the memecoin recorded a positive Delta over the past day after previously turning negative. 

Source: Coinalyze

Within 24 hours, PUMP saw 17.7 billion in Buy Volume, compared to 15.8 billion in Sell Volume.

As a result, the altcoin recorded a positive Buy Sell Delta of 1.9 billion, a clear sign of aggressive spot accumulation. 

Whales lead the charge 

Whales led the way amid soaring demand for PUMP. According to Nansen, whale-accumulating addresses have dominated the market over the past six days. 

On the 14th of September, whales purchased 3.24 billion tokens, a decrease from their 6.25 billion total buy on the 13th of September. 

Source: Nansen

At press time, PUMP’s Whale Balance Change was 1.8 billion, a drop from 3.1 billion the previous day, a clear sign of aggressive whale accumulation.

Notably, whales have recorded a positive Whale Balance Change for six consecutive days. 

Profit-takers not left behind 

With PUMP rallying for 13 consecutive days, investors, especially whales who went long during the dip, enjoyed massive profits.

According to On-chain Lens, a whale holding a PUMP long position with 5x leverage is currently sitting on an unrealized profit of $7.8M.

Source: On-chain Lens

Unsurprisingly, amid record-breaking profit margins, market participants have turned to aggressive profit realization.

According to CoinGlass, PUMP recorded a positive Spot Netflow for four consecutive days. At press time, netflow was $3.2 million, a significant drop from $20 million recorded on the 13th of September. 

Source: CoinGlass

Such a spike in netflow reflects increased inflows compared to outflows, a clear sign of increased selling activity. Historically, increased selling pressure has always led to lower prices.

More gains ahead?

PUMP recorded a sustained uptrend amid rising demand across all market participants.

As a result, the memecoin’s Relative Strength Index (RSI) surged to 85, reaching the overbought zone. At the same time, its Chaikin Money Flow (CMF) jumped to 0.26, further confirming buyer’s dominance.

Source: TradingView

If buyers, especially whales, continue to accumulate, PUMP is most likely to make more gains. In doing so, it will hit $0.009 and target $0.01.

However, if profit takers overrun the market, there will be a retrace, with PUMP dropping to $0.0068.