PUMP price rallied for the fourth straight day as Pump.fun bought back over $12 million worth of PUMP tokens from the market.
Summary
- PUMP price shot up 40% over the past week.
- Pump.fun bought back over $12 million worth of PUMP tokens.
- $0.0058 marks the next projected target based on technicals.
According to data from crypto.news, Pump.fun (PUMP) was trading at $0.0045, up 40% over the past 7 days and 73% above its lowest point in August. The token’s daily trading volume was at $466 million while its market cap stood at over $1.62 billion as of press time.
PUMP’s rally this week was primarily driven by Pump.fun’s buyback of nearly $12.2 million worth of PUMP tokens from the open market.
When a project buys back its own tokens, it reduces its circulating supply, thereby increasing scarcity and potentially supporting the token’s price gains.
PUMP crypto also rallied amid renewed investor hype after the token briefly surpassed Hyperliquid, a decentralized exchange and Layer 1 blockchain, in 24-hour revenue on Sept. 4.
More broadly, the token’s recent gains have also been supported by Pump.fun’s strategic overhaul called Project Ascend, introduced on Sep. 2. The initiative focuses on empowering creators on the Pump.fun platform and intends to scale its ecosystem by 100x while also strengthening the long-term viability of memecoins launched through the platform.
Further, data from Nansen shows renewed demand from whales and public figures over the past week.
Notably, the balance of tokens held by whale wallets rose from 21.95 billion on Aug. 29 to 22.53 billion as of press time. Holdings by public figures also increased by 8%, climbing from 442.8 million to 478.88 million over the same period.
When whales and influential figures accumulate a token, it often sparks increased interest from retail investors, many of whom buy in due to FOMO (fear of missing out), driving price appreciation for the asset.
PUMP price has been trading within an ascending parallel channel pattern since the beginning of September, as shown on the 4-hour chart.
The token is approaching a breakout above $0.0046, a key resistance level that PUMP must surpass to confirm further upside momentum.
Additionally, the 50-day simple moving average has recently crossed above the 200-day SMA, forming a golden cross, a classic bullish signal that strengthens the case for continued gains in the short term.
Based on this setup, PUMP is likely to remain within the ascending channel, with the next target at the $0.0050 psychological resistance. A decisive move above this threshold could pave the way for a rally toward $0.0058, the level projected by the 161.8% Fibonacci extension. The target remains 29% above the current price level.
Conversely, a drop below $0.0042 would invalidate the bullish structure and could open the door to a potential reversal.
