Key Takeaways
PUMP has bullish prospects on multiple timeframes, and a price dip to $0.0036 is possible in the short term. Bitcoin’s strength could give Pump.fun bulls a better chance of driving a price rally.
Pump.fun [PUMP] has rallied 59.6% within the past ten days.
It made a low of $0.0023 on the 25th of July, and defended the same level as support toward the end of the month. The PUMP bulls forced a revisit to $0.00262 on the 26th of August.
From there, the bulls were able to force a comeback. They were on the verge of establishing a bullish market structure on the 1-day chart.
It appeared possible that the $0.005 psychological resistance could be tested in September.
Source: PUMP/USDT on TradingView
On the 1-day chart, PUMP will have a bullish market structure if it can close the daily trading session above $0.00417. This session was not yet finished as of the time of writing.
The technical indicators also gave a positive bias for traders. The RSI was above 60, at press time, showing strong bullish momentum. The OBV had also made a new high above the one from August, signaling steady buying pressure.
The Fibonacci retracement levels showed that the 50% level was at $0.00459, just below the $0.00469 level from mid-July.
The confluence of these two resistance levels should pose a sizable obstacle to PUMP bulls in the coming days.
Why Pump.fun bulls could face a minor pullback now
Source: CoinGlass
The 1-month liquidation heatmap showed that the $0.00418 area was a dense magnetic zone. It has been swept in recent trading hours, which meant that Pump.fun token prices were ripe for a trend reversal.
This reversal might be only short-term. Zooming into the liquidity built up over the past few days can help see where PUMP might go in the coming days.
Source: CoinGlass
The 3-day liquidation heatmap showed that the $0.0039 and $0.0036 levels were the next short-term price targets. The liquidity at $0.0042 has been swept, but recently another pocket at $0.00438 has built up.
Traders should not immediately look to go short on PUMP. Rather, a price dip to $0.0036 could provide a buying opportunity targeting the $0.0046 resistance.
If the uptrend can last and Bitcoin [BTC] can climb back above $112k, PUMP might get a chance to push toward $0.005 and higher in September.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion