Key Takeaways
The bullish performance of BTC and ETH over the past 24 hours aided market-wide sentiment. PUMP also saw a breakout past the key short-term resistance at $0.003, and has a chance of rallying a further 20%.
The Pump.fun [PUMP] token saw massive losses days after reaching a high of $0.00689 on the 15th of July. Its drawdown measured 66.58% over the next ten days, which saw the meme coin launchpad token fall to $0.0023.
After this drop, a week of consolidation was seen. The price action on the lower timeframes showed neutral momentum and a lack of strong accumulation from buyers. Despite this, a range breakout past the $0.003 high was seen on the 31st of July.
Bitcoin [BTC] was pushing higher from the $116.7K support level. It saw a dip to $115.8K on the 30th of July. Similarly, Ethereum [ETH] also jumped higher by 1.47% after retesting the $3.7K local support.
The bullish performance of Bitcoin and the leading altcoin, and their positive short-term expectations, might help set up PUMP for a nearly 20% rally next.
Should you buy PUMP now?
Source: PUMP/USDT on TradingView
On the 2-hour timeframe, PUMP has a bullish market structure. It formed a range between $0.00245 and $0.003 over the past week, but surged 30%, at press time, and broke out beyond the range high in the past 24 hours.
At the time of writing, a retest of the $0.003 demand zone appeared to be in the making.
Such a retest of the $0.0029-$0.003 region could offer a good buying opportunity for PUMP traders. Note that this trade would be based on the lower timeframe price action and not the fundamentals behind the Pump.fun token.
The technical indicators were sound. The OBV has made a higher high, and the RSI underlined strong bullish momentum.
The fair value gap at $0.0036 and the resistance level at $0.00378 were attractive PUMP price targets over the next few days.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
