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. 

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. 

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.

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. 

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.

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.