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The price of the Pump.fun token increased by more than 20% in the last 24 hours, in a strong and remarkable movement. In the past month, the price of PUMP has increased by more than 60%. But when looking over a longer period of time, the trend continues to weaken, with the token declining by about 37% in the last three months.
This contradiction highlighted its importance. This bullish wave is not found in a strong uptrend, but rather in a broader downtrend. This raised an important question: Is the movement approaching its peak, or is the price facing a temporary barrier before a new rally? The graphs indicate that the second option deserves serious attention.
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The first encounter always points to the side
The current wave did not appear suddenly. On January 13, PUMP broke the handle resistance of a large cup and handle pattern. This pattern is formed when the price rotates to build a base, then stops, and then breaks to the top.
After breaking this handle, the breakout forecast indicated the area of ​​$0.0045. This goal has not changed. Even after the last upward wave, the price moves in line with the original path.
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Just summarize the main point. The breakout structure still applies. The last move didn’t break it. The price always behaves as the assets typically behave after a discovery. Also, the chart shows the formation of a new cup.
What has changed is the speed. The price of PUMP moved strongly towards the resistance, and here the barrier appeared.
A second cup forms as the momentum indicates that aggregation has occurred
After the discovery in January, the price of PUMP did not decrease significantly. On the contrary, it begins to form a smaller cup structure in a short time. The importance of this matter is highlighted.
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The first cup had a sloping neck. As for the current configuration, it shows an upward sloping neckline. This difference constitutes an important distinction. An upward-sloping neckline usually indicates demand for improvement, even if the price is on pause.
Price is currently pushing towards resistance near the top of this smaller structure. This is the barrier. When the price hits resistance after a strong move, the price often stops, not because the buyers have left, but because the sellers have finally started to appear.
Use momentum indicators to see if energy is building up or leaking. The Relative Strength Index or RSI helps measure momentum. During the current move, the RSI appears to be rising even as the price begins to slow down.
A hidden bearish divergence (when the price makes a lower high while the RSI makes a higher high) will be confirmed if the next price candle for PUMP forms below $0.0031. In addition, a similar hidden bearish divergence was seen when the last accumulation of the handle began on January 6.
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Liquidity flows indicate a phase of accumulation, not a reflection in the pumping price
The behavior of whales supports this view at the same time. Large holders reduced their holdings by about 3.6%, bringing the total whales to about 14.37 billion tokens. This sale happened after the rally, not before.
The importance of this is that selling whales after rising prices usually indicates profit-taking, not panic. This often results in a sideways move rather than a complete break in the trend. This is another sign of accumulation.
The exchange rate data shows a similar story. After steady outflows in the last two days, the coin has seen a PUMP A sudden transformation Of the positive net inflows, about $900,000 moved to the exchanges. When currencies move on the exchanges after a rally, it is often a reflection of short-term selling pressure. This is consistent with the idea of ​​hoarding and the behavior of whales.
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Levels now become crucial.
Watch for a pullback towards $0.0028 or even $0.0026 as this clearly remains in the consolidation range. A drop below $0.0023 was recorded to weaken the structure. Note that when it moves below $0.0022, the bullish pattern will be completely invalidated.
Follow on the upside, a key level near $0.0032. Notice when there is a clear and stable discovery above that area that the wall has been absorbed. If this happens, both the original cup and handle break and the new cup formation will head towards the same target near $0.0045.
Note that this compatibility is rare. Having two separate models indicating the same level strengthened the hypothesis rather than weakened it.
Look at the current price PUMP It hit resistance at $0.0031.
You know that everything around this wall indicates that the pressure is increasing, not disappearing. If the consolidation holds, the next PUMP bounce may be stronger than the previous move.
