What to know:
- Pump.fun (PUMP) price holds above key support as the token consolidates after its recent breakout.
- Bullish technical signals suggest a possible retest of the breakout zone and renewed upward momentum.
- A break above near-term resistance could strengthen the recovery and open the path toward higher levels.
The PUMP price is exhibiting strength even after its latest pullback, and investors are watching out for a continuation of the recovery trend as the token consolidates in its latest breakout zone.
At the time of writing, PUMP is trading at $0.002298, down 1.09% over the last 24 hours. The token has recorded approximately $83.88 million in 24-hour trading volume, while its market capitalization stands near $913.11 million.
PUMP Price Signals Bullish Breakout Retest
The recent price performance caught the interest of crypto analyst Ali Martinez. As stated in his post dated August 8, a continuation of the current trend by PUMP would see the current downtrend turn into a positive retest of the previous breakout region.
From the analysis, the positive retest could help pave the way for yet another positive uptrend move, with $0.0046 highlighted as a possible upside target. The move to that price point would see a considerable increase from the current price level, but there are technical barriers to be broken.
Also Read | Circle Launches Native USDC and CCTP on X Layer to Boost Stablecoin Payments
PUMP Price Tests Important Technical Zone
Currently, PUMP is trading around $0.002298, thereby ensuring that the coin is above the central Bollinger Band of $0.00208.
The top Bollinger Band is at $0.00246, while the bottom band is at $0.00169. The large gap between the bands indicates high volatility.
Price moving above the middle Bollinger Band indicates that the technical formation for the rebound is still intact. The top band around $0.00246 may serve as a first point of resistance.
Above the current level, the bearish setup may gain more strength and make price reach higher resistance levels. A rejection close to $0.00246 may force price down to the middle band again.
The MACD favors the existing bullish trend formation. The MACD for PUMP is ~0.00017, which is above the signal ~0.00015, and there is a positive MACD histogram of about 0.00002.
As long as the MACD remains above the signal, the bulls remain dominant. A falling MACD will be a sign that the upward bounce is losing strength.
PUMP will have to be on alert with regard to protecting 0.00208. A breakdown through this level will undermine the bull narrative and leave the coin vulnerable to the Bollinger Band at 0.00169.
What Could Happen Next For PUMP Price
The next big test for PUMP will be the ability of the token to stay above the middle Bollinger Band at $0.00208 while breaking above the upper Bollinger Band at $0.00246.
If PUMP manages to break above $0.00246, the short-term structure will get better, thus making it possible to go towards the level of $0.0046 mentioned by Martinez.
However, failure of the PUMP price to hold above $0.00208 would be negative for the setup, and the digital asset would head toward the lower Bollinger band of $0.00169.
At the moment, the main idea is that the cryptocurrency is still at a crucial technical juncture. Even though PUMP is experiencing a correction at the moment, it should still manage to hold key support and resist the resistance at $0.00246.
Also Read | Robinhood Ventures Fund Invests $30M in Whatnot Series G Round
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Be the first to comment