Pump.fun (PUMP) climbed to $0.0015 on June 28, driven by renewed market participation. However, soon after, the altcoin fell to the local low of $0.0013. During the same period, transaction volume increased by 20%; This signaled increased market activity as investors made profits.
Whale seized 242.66 million PUMPS
AMBCrypto previously reported: PUMP made a profitdue to increased market participation. This market activity has now shifted to high net worth investors. In fact, whales begin to accumulate PUMP in the midst of prolonged weakness.
According to Lookonchain, a whale returned after a year of sleep and started accumulating PUMP. The whale spent 5,000 SOLs worth $358k and purchased 242.66 million SOLs. PUMP.
Whale seems to be moving away from SOL and towards PUMP as a better option. On the price charts, this movement towards PUMP signals increased market confidence and signals the expectation of further gains.
Moreover, foreign exchange activity reflected this increased demand. The altcoin’s Spot Netflow turned negative after previously rising to positive.
At the time of writing, Spot Netflow was at -$688K, a significant drop from $1.4M. Such a decline indicates that the profit-taking that caused the market to pull back has already eased. Often such market behavior has occurred before the increase in scarcity that has historically driven price performance.
Network usage signal recovery
In addition to the increased number of owners, PUMP also recorded a significant increase in Daily Active Addresses, rising to a high of 9.2 thousand.
The last time PUMP recorded such a high number of active daily users was almost a month ago. This suggests that network activity is also picking up. Typically, such strength in fundamentals precedes outperformance on an asset’s price charts.
What do momentum indicators suggest?
Although demand for whales and new users is emerging, market momentum remains weak on both sides. For example, when looking at the Relative Strength Index (RSI), it was seen that the indicator was rising but remained below 50 as of the time of writing.
This suggests that although buyers have returned, demand remains insufficient to trigger the rally. The DMI indicator further confirmed this market momentum.
In particular, ADX, ADXR and –DI were around 21, while +DI was around 18. This pattern shows that both upward and downward momentum are significant. As a result, sideways movement is possible. If this happens, PUMP could trade between $0.0012 and $0.0015.
However, if the increased whale demand materializes and positively affects the market, the altcoin can turn $0.0015 and hit $0.0016.
Final Summary
- The whale that returned after a year of sleep was bought 242.66 million PUMP worth $358 thousand.
- Despite the recovery in demand and structural strength, PUMP momentum remains weak.
