After hitting a new low two days ago, Pump.fun (PUMP) has jumped nearly 30% to a key resistance level. As the token attempts to reclaim this area, an analyst suggested that the bottom may be in, and a recovery rally is underway.
On Thursday, Pump.fun retested a crucial level after its recent struggles. The token has been making the headlines for its constant bleeding, hitting new all-time lows (ATLs) over the past week.
Since then, the token has dropped even further, hitting a new low of $0.0022 on July 29, nearly a 70% drop from the ATH. Nonetheless, PUMP has also been ranging between the $0.0024-$0.0029 area during the past week, attempting to break above this range three times.
Over the past two days, Pump.fun has surged nearly 30% from the lows, breaking above the $0.0030 resistance for the first time in a week. The token surged 12% on Thursday to hit a weekly high of $0.0032 before retracing toward the $0.0027-$0.0029 area.
He previously forecasted that the bottom would happen “relatively soon,” and it would likely be followed by “some sort of giga crime pump.”
Meanwhile, a community member noted that “PumpFun has pivoted to what seems to be 100% token buybacks. 98% of yesterday’s PumpFun / PumpSwap revenue went to buying PUMP today.”
As of this writing, PUMP is trading at $0.0027, a 7% decline in the weekly timeframe.
