Pump.fun (PUMP) climbed to $0.0015 on June 28, on renewed market participation. However, shortly after, the altcoin returned to a local low of $0.0013. During the same period, trading volume jumped 20%, signaling increased market activity as traders took profits.
A whale recovers a 242.66 M PUMP
AMBCrypto reported earlier that PUMP made gains, thanks to increased market participation. This market activity has now shifted to wealthy investors. In fact, whales begin to accumulate PUMP in the midst of prolonged weakness.
According to Lookonchain, a whale returned after a year of dormancy and began accumulating PUMP. The whale spent 5,000 SOL, worth $358,000, and purchased 242.66 million PUMP.
The whale appears to be moving away from SOL and towards PUMP as the best option. On price charts, this move toward PUMP signals growing market confidence and suggests expectations for further gains.
Furthermore, foreign exchange activity also echoed this growing demand. The altcoin’s Spot Netflow turned negative after turning positive.
At press time, Spot Netflow was -$688,000, down significantly from $1.4 million. Such a decline suggests that the profit-taking, which caused the market decline, has already eased. Often, such market behavior has preceded increased scarcity, which has historically driven price performance.
Network usage signal recovery
In addition to the increase in holders, PUMP saw a significant increase in daily active addresses, reaching a high of 9.2K.
The last time PUMP saw such a high number of active daily users was almost a month ago. This suggests that network activity is also recovering. Typically, such strong fundamentals preceded better performance on an asset’s price charts.
What do momentum indicators suggest?
Even though demand for whales and new users has emerged, market dynamics remain weak on both fronts. For example, a review of the Relative Strength Index (RSI) showed that the indicator is rising but remains below 50 at the time of writing.
This suggests that even though buyers have returned, there remains insufficient demand to trigger an uptick. The DMI indicator further confirmed this market dynamic.
Notably, the ADX, ADXR, and –DI were hovering around 21, while the +DI was around 18. This pattern indicates that the upward and downward dynamics are significant. As a result, sideways movement is likely. If this happens, PUMP could trade between $0.0012 and $0.0015.
However, if the growing demand for whales materializes and positively impacts the market, the altcoin could swing $0.0015 and aim for $0.0016.
Final Summary
- A whale returned after a year of dormancy and was purchased 242.66 million PUMP worth $358,000.
- PUMP dynamics remain weak despite the recovery in demand and structural solidity.
