After failing to breach $0.00165 for three consecutive days, Pump.fun [PUMP] bulls bounced back and pushed the coin’s price to a monthly high of $0.00169 before pulling back slightly.
At press time, Pump.fun traded at $0.00165 after rising by 9% on the daily charts. This price hike was supported by a 61% increase in trading volume, reflecting strong market participation.
Pump.fun demand signals a recovery
After PUMP dropped to $0.0015, traders returned with strength to defend this key support.
Coinalyze data shows PUMP logged $3.22 billion in buy volume versus $2.7 billion in sell volume on the 5th of July. The trend has continued, with buy volume rising to $1.14 billion compared to $1.02 billion in sell volume at the time of writing.
Over this period, the altcoin saw a positive buy-sell delta of 616 million. A positive delta suggested buyers currently enjoy significant control of the spot market. On the derivatives market, PUMP’s Open Interest (OI) surged 12% to $144 million.
At the same time, the altcoin’s Derivatives Volume climbed 40% to $149 million. Rising OI and volume in tandem indicated greater participation as traders opened new positions, both short and long.
In fact, traders on Binance and OKX mostly opened long positions, as the Long/Short Ratio remained above one.
Thus, speculative activity also returned to the market. Historically, sustained demand on both the spot and derivatives has always preceded stronger upward momentum.
Can the upside momentum hold?
PUMP has recently shown relative strength, largely driven by a recovery in demand-side activity. As a result, the altcoin’s upside momentum has strengthened significantly.
For starters, the altcoin’s Aroon Up indicator surged to 100%, while Aroon Down fell to 21%. With Aroon Up at such elevated levels, the signal points to strong upward momentum.
At the same time, the ADX-DI indicator also confirms this strength as the positive index formed a bullish crossover and rose to 16.
Taken together, these indicators point to strong market momentum and a high likelihood that the trend will continue. Therefore, if demand experienced across the market holds, we could see PUMP make some gains on its price charts.
In doing so, the altcoin will hold $0.0016 and target $0.0018 resistance. However, if the altcoin fails to close above $0.0016, another pullback to $0.0013 could follow.
Final Summary
- Pump.fun surged 9% to a monthly high of $0.00169 before retracing to $0.00165 at press time.
- PUMP signaled a recovery in demand across spot and derivatives markets, as bulls target the $0.0018 resistance.