After failing to surpass $0.00165 for three consecutive days, Pump.fun (PUMP) bulls rebounded and pushed the coin’s price to a monthly high of $0.00169 before pulling back slightly.
At press time, Pump.fun was trading at $0.00165 after rising 9% on the daily charts. This price increase was supported by a 61% increase in trading volume, reflecting strong market participation.
Pump.fun demand signals recovery
After PUMP fell to $0.0015, traders came back in force to defend this key support.
Data from Coinalyze shows that PUMP saw $3.22 billion in buying volume, up from $2.7 billion in selling volume on July 5. The trend continued, with purchase volume reaching $1.14 billion, up from $1.02 billion in sales volume at the time of writing.
During this period, the altcoin experienced a positive buy-sell delta of 616 million. A positive delta suggests that buyers currently have significant control in the spot market. In the derivatives market, PUMP’s Open Interest (OI) jumped 12% to $144 million.
At the same time, altcoin derivatives volume soared 40% to $149 million. The simultaneous increase in OI and volume indicates greater participation as traders open new positions, both short and long.
In fact, traders on Binance and OKX mostly opened long positions as the Long/Short ratio remained above one.
Thus, speculative activity has also returned to the market. Historically, sustained demand, both in the spot market and in derivatives, has always preceded stronger bullish momentum.
Can the upward momentum continue?
PUMP has recently demonstrated relative strength, largely driven by a recovery in demand-side activity. As a result, the bullish momentum of the altcoin has strengthened significantly.
To begin with, the altcoin’s Aroon Up indicator jumped to 100%, while the Aroon Down indicator fell to 21%. With Aroon Up at such high levels, the signal indicates strong bullish momentum.
At the same time, the ADX-DI indicator also confirms this strength as the positive index formed a bullish crossover and rose to 16.
Taken together, these indicators indicate strong market momentum and a high probability that the trend will continue. Therefore, if market demand maintains, we could see PUMP making gains on its price charts.
In doing so, the altcoin will hold $0.0016 and target resistance at $0.0018. However, if the altcoin fails to close above $0.0016, another pullback to $0.0013 could follow.
Final summary
- Pump.fun surged 9% to a monthly high of $0.00169 before falling back to $0.00165 at press time.
- PUMP reported a resumption of demand in the spot and derivatives markets, as bulls target resistance at $0.0018.
