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PUMP Eyes Rally as DEX Volume Surges: Technical Forecast
Source: CryptoNewsNet Original Title: PUMP eyes rally as DEX volume surges: Check forecast Original Link: https://cryptonews.net/news/analytics/32240523/
Key Takeaways
Memecoin Demand Pushes PUMP Above $0.02
PUMP, the native token of Pump.fun, is up by 30% in the last seven days, making it one of the top performers among the leading 100 cryptocurrencies by market cap. The rally comes amid growing demand for memecoins.
The rally also resulted in Pump.fun’s DEX volume hitting $1.28 billion on Monday, up from the $805 million recorded on Sunday.
The token has appreciated in recent days thanks to meme coin-driven trading activity in several ways, including token buybacks that depend on revenue generated. The DEX allocates nearly 100% of revenue to the token buyback program, which is expected to build long-term value for PUMP.
Furthermore, retail interest in PUMP has increased in recent days. According to CoinGlass, PUMP’s futures Open Interest (OI) averaged $231 million on Tuesday, up from approximately $207 million on Monday and $150 million on last Thursday. This suggests that traders are confident PUMP has the potential to sustain a short-term recovery.
PUMP Eyes Recovery Above $0.0032
The PUMP/USD 4-hour chart is bullish and efficient as the token has added 30% to its value in the last seven days. At press time, PUMP is trading above $0.0023 and could rally higher in the near term.
The Moving Average Convergence Divergence (MACD) indicator on the 4-hour chart supports a bullish bias. The RSI also reads 61 and is heading into the overbought region if the bullish trend continues.
If the bulls remain in control, PUMP could rally towards the 50-day Exponential Moving Average (EMA) at $0.002992 to ascertain its recovery potential and encourage traders to increase exposure. The next major resistance level stands above the 100-day EMA at $0.0032.
However, if the bears regain control, PUMP could undergo a slight correction towards the $0.0020 psychological level.