- Listings on Binance.US, MEXC and Coins.ph have increased liquidity for Pump.fun’s token.
- A $33 million buyback program supports the price, but whale sell-offs have raised selling pressure.
- A $5.5 billion class-action lawsuit and rising competition pose significant long-term risks.
Pump.fun’s native token, PUMP, has been in the spotlight over the past month, delivering triple-digit gains while attracting fresh attention from retail traders and exchanges alike.
Despite a recent pullback, both fundamental and technical indicators suggest the token’s rally may not be over.
Multiple exchanges have recently listed the PUMP token
Over recent months, several major exchanges have broadened access to PUMP, a move that has increased liquidity and raised the token’s profile.
In July, MEXC listed PUMP/USDT and PUMP/USDC in its innovation zone with a conversion feature, opening one of the deepest retail-driven order books in Asia.
Last Thursday, Binance.US launched spot trading for the PUMP/USD pair, giving U.S. traders direct access for the first time.
MEXC has also committed to listing a Pump.fun token every Monday in its meme trading zone.
Regional exchange Coins.ph added support as well, offering PUMP/PHP via its Convert function to serve Southeast Asia’s growing Solana user base.
These listings signal that exchanges still see sustained interest in Pump.fun despite questions around the token’s long-term stability.
The impact was immediate: 24-hour trading volumes topped $1.2 billion, spreads tightened as liquidity improved, and new buyers entered the market.
PUMP token buybacks provide stability
An important factor underpinning PUMP’s price is the aggressive buyback program run by the Pump.fun platform.
Since August, the team has allocated roughly 35% of fee revenue to purchasing tokens on the open market.
Data shows buybacks totaling about $33 million, with daily purchases averaging $1 million to $1.3 million.
These buybacks reduce circulating supply and help shore up confidence during volatile sessions.
Critics argue the buyback approach functions more like market making than organic demand, pointing out that many purchases occurred at a premium to prior trading levels.
Nevertheless, the program has helped prevent sharper corrections and reassured retail holders that the team will step in during sell-offs.
$5.5 billion class-action lawsuit and platform rivalry
Despite solid fundamentals, PUMP is not without risks.
A $5.5 billion class-action lawsuit filed in July accuses Pump.fun of operating as an unlicensed casino and links the platform to more than $700 million in retail losses.
The case remains unresolved, but its timing coincided with PUMP’s price peak, raising concerns that legal proceedings could trigger risk-off sentiment among larger investors.
Competition has also intensified. LetsBONK.fun has overtaken Pump.fun in daily Solana memecoin launches and captured more than half of the segment’s revenue in August.
This shift threatens Pump.fun’s fee-driven model, which funds buybacks and underpins value for PUMP holders.
For now, Pump.fun still leads in token listings, but continued erosion of market share could weigh on future growth.
ICO whales selling
Another headwind is selling pressure from early investors.
Reportedly, about 60% of ICO participants have exited their positions, and a few whales have offloaded near $40 million worth of tokens since July.
The original ICO price of $0.004 has become a psychological resistance level. With more than half of the circulating supply still held by ICO buyers, the risk of additional large-scale selling remains significant.
This dynamic has created persistent overhead resistance and raises questions about how much further buybacks can offset distribution from major holders.
Price outlook for PUMP
Despite these challenges, the token’s recent performance has been notable.
PUMP’s price rose more than 125% over the past month and over 60% in the last week, reaching an all-time high of $0.008819 before pulling back.
The token currently trades near $0.0078, down roughly 3.4% in 24 hours as traders lock in profits.
Key technical support lies between $0.00613 and $0.00605, while resistance sits in the $0.00739 to $0.00797 band.
A decisive break above that resistance zone could spark another leg higher, with bulls eyeing $0.00846 as the next target.
Conversely, a drop below support would put the $0.0064 area in play, with the potential for panic selling if $0.007 fails to hold.