Key points
- PUMP rose 30% over the past seven days as the crypto market rebounded from December lows.
- The native Pump.fun token could climb further in the short term amid rising DEX volumes.
Memecoin demand pushes PUMP above $0.02
PUMP, the native token of Pump.fun, gained about 30% over the last seven days, making it one of the stronger performers among the top 100 cryptocurrencies by market capitalization. This rally coincides with growing demand for memecoins.
The surge also helped Pump.fun’s DEX volume reach $1.28 billion on Monday, up from $805 million recorded on Sunday.
Recent gains have been driven by meme-based trading activity in several forms, including token buybacks funded by platform revenue. The DEX allocates nearly 100% of its revenues to a token buyback program, which is intended to support PUMP’s long-term value.
Retail interest has also increased. According to CoinGlass, open interest (OI) in PUMP futures averaged $231 million on Tuesday, compared with about $207 million on Monday and $150 million the previous Thursday. That uptick suggests traders are betting on the token’s potential for a short-term recovery.
PUMP shows recovery above $0.0032
The PUMP/USD 4-hour chart looks bullish and momentum-driven, reflecting the token’s roughly 30% weekly gain. At the time of writing, PUMP trades above $0.0023 and may be positioned for a short-term bounce.
The 4-hour moving average convergence divergence (MACD) supports a bullish bias, while the relative strength index (RSI) sits around 61 and is moving toward the overbought zone if the uptrend continues.
If bulls remain in control, PUMP could rebound toward the 50-day exponential moving average (EMA) near $0.002992, which would help assess the strength of the recovery and potentially encourage traders to increase exposure. The next major resistance level sits above the 100-day moving average at approximately $0.0032.
Conversely, if sellers regain momentum, PUMP could face a modest correction toward the psychological support level at $0.0020.