Pump.fun’s price soared earlier this week, signaling a potential breakout and new bullish momentum. This increase briefly suggested a sustained upward trend in PUMP.
However, the subsequent decline has created uncertainty, with mixed holder activity now clouding the outlook and raising questions about whether the breakout can be sustained.
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Pump holder shows mixed operation
Although prudent money activity has provided some support, market sentiment remains divided. Smart money refers to capital managed by experienced investors, institutional investors, venture companies, and influential whale wallets. These companies often shape price direction through strategic accumulation during times of high uncertainty.
In the case of PUMP, the smart money wallet added approximately 48 million tokens in the past week. This increased their total holdings by 5.8%. Such accumulation suggests confidence in future price increases. Continuing to buy from these players could help stabilize PUMP and prevent further declines.
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Despite prudent capital accumulation, macro momentum is showing warning signs. Network data shows a sharp decline in new PUMP addresses.
In 48 hours, the number of new wallet creations decreased from 8,570 to 2,201, a 74% decrease in the number of participants.
This decline indicates less interest in retail and less new capital inflows. New holders play a key role in sustaining the rise, especially of emerging altcoins.
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Without new demand from new participants, it will become increasingly difficult for prices to maintain strength, even with whale support.
Will PUMP Price successfully breakout?
PUMP price recently broke out of a cup and saucer pattern, a formation typically associated with bullish continuations. This breakout predicted a 57% upside from $0.00264 with a target of $0.00420.
However, prices did not hold up and there were signs of hesitation among buyers.
Mixed signals suggest that PUMP may continue to consolidate above the $0.00264 support level. If this zone holds, the bullish structure will remain intact.
A successful return to the $0.00278 resistance as support could reignite momentum and revive the breakout rally.
Conversely, when inflows decrease, downside risk increases. If $0.00264 cannot be sustained, PUMP could slide towards the support at $0.00242. Further weakness would invalidate the bullish theory.
If selling pressure continues, the price could widen losses towards $0.00212, with the breakdown confirmed.
