Pump.fun reclaims $0.0020 – Can $414M in buybacks sustain PUMP’s rally?

Pump.fun [PUMP] fell to a low of $0.001 two days ago but rebounded alongside the broader market on the 26th of July. The altcoin bounced back to reclaim the $0.0020 resistance level.

At press time, PUMP was trading around $0.00203 after rising by 13.02% on the daily charts. Over the same period, the altcoin’s trading volume surged 157% to $92 million, signaling strong market participation.

PUMP revenue flips Hyperliquid amid rising capital inflow

PUMP’s market sentiment was mostly strengthened by reports that PUMP finally surpassed HYPE in revenue.

According to Pump.fun Ecosystem, the protocol’s daily revenue jumped to $7.45 million, outpacing Hyperliquid [HYPE] at $7.31 million. The rising revenue implies that the ecosystem is generating significant income from its operations. 

The protocol has generated $1 billion in fees with $448 million in annualized revenue. Additionally, daily capital inflow also remains steady.

According to Defillama data, USD Inflows have jumped to $5.6 million as of writing, indicating that investors are actively engaged and continue to deploy capital into the protocol.

PUMP token buybacks continue 

Notably, the project has spent a significant share of income generated by the network on token buybacks. In fact, the project has bought 154.57 billion tokens, worth approximately $414.27 million.

In the latest purchase, the team acquired 216 million PUMP, according to Lbexplorer. In doing so, the team successfully removed 15.357% of the total supply. Such massive capital inflows show the team’s commitment to the project, especially during a period of extended weakness.

Recently, token buybacks have become one of the most embraced mechanisms by various protocols to reduce supply and market pressure. Often, this approach has provided short-term relief and boosted upward price momentum.

Can the upside momentum hold?

With protocol activity remaining steady, PUMP’s upside momentum is slowly strengthening. In fact, the altcoin’s MACD has remained on an upward trajectory, rising to 0.000118 as of writing.

This signals buyers are gaining control, and the uptrend is likely to continue. To confirm the uptrend, the altcoin’s Relative Strength Vigor Index (RVGI) needs to make a bullish crossover.

The RVGI was rising while its signal line declined, which could clear a path for an upside crossover. If it happens, the altcoin will likely target $0.0022.

However, to achieve this, the altcoin must hold above $0.0020 or risk another drop towards $0.0017.

Final Summary

• Pump.fun daily revenue flipped Hyperliquid, rising to $7.45 million, and bought back 216 million PUMP. 
• PUMP surged 13% after successfully defending $0.002, as bulls target a move towards $0.0022.