Pump.fun’s PUMP Rewards Diamond Hands With 4X in 7 Weeks: Analysis

The cryptomarkt continues its dance of consolidation, with Bitcoin and Ethereum more or less act sideways as traders and investors wait for the next step of the Federal Reserve.

But while the crypto-majors water penetrate prior to the long-awaited decision of Wednesday about interest rates, one token steals the show with a face-melting weekly rally of 77%: pump.fun’s pump.

By defying both his own doomers and the typical seasonal market waste in September, the Solana-based pump proves that the no-sayers uneven and its diamond hands. It went from the worst performing token from July to the September king of September.

This is what is going on, and what the graphs have to say about it:

Pomp.Fun’s Pump price: The purchase signal was realistic

Pump.fun can just as well have told the bag holders: “If you can’t handle me in my worst, you don’t earn me at my best.”

Those who had the stomach to process the dip of almost 70% of pump after the July launch are now all in the green – the currency is 63% higher than its ICO price and an increase of almost 270% of the soil.

The remarkable turnaround from Pump validates our analysis from July, when we called the bottom near $ 0.0023. The actual soil turned out to be $ 0.00227 – so very close.

How did this happen? It can be summarized like this:

Pomp.Fun, the Solana Meme Coin Launchpad that is responsible for millions after millions of tokens that enter the trenches, launched its own pumping smoking in a ICO In July – when the competing token launched the heels, he sucked.

The pumping smoking was sold out within a few seconds with a rating of $ 4 billion and generated $ 600 million in fresh capital for the company. The price of pump rose in the immediate aftermath and then cratered almost as fast. In July and the beginning of August, Pump.Fun lost ground of competing launching spots – namely Bonk.Fun – and the price of pump suffered as a result. Then things changed.

At the end of July, Pump.Fun initiative purchasing of token (comparable to share purchasing, for your standards that are there), a profit taken on generated from the launch platform and put them back directly in the graph, pump pump. The company then introduced “Creator Rewards” (reimbursements comparable to NFT Royalties) and other stimuli for live streamers, and since then it has been good times for pump. The platform has the land that was lost in July, in July, trade volumes are up and Pump.fun is generating again More than $ 1 million in income per day.

So of course Pump is now 4x from the bottom of July. Now, on the charts:

The pumping smoking is open today for $ 0.0086, above a completely diluted rating of $ 8.6 billion, and since then arranged at $ 0.0082. It has been somewhat up in the last 24 hours and tests the psychological resistance level of $ 0.009 marked by all time.

The technical indicators who study the most traders who study graphs look at a powerful upward trend, although it is approaching some important bending points.

The relative strength index, or RSI, for the pump is currently at 79, which is deep overbought. RSI measurement measures the momentum on a scale of 0-100, with measurements above 70 signal transition conditions. Pump flashes some warning signals on 79 points. This is usually where taking a profit emerges when algorithmic trade systems cause automatic sales.

Traders would read this as a bearish in the immediate term, because usually lock the profit at these extreme levels, so that a withdrawal to the range of $ 0.007- $ 0.0075 may be activated before the next leg is higher.

This is perhaps the reason why predictors on Myriad—A forecast market built by DecryptThe parent company, Dastan – is currently somewhat bearish on pump. With pump that is currently on a market capitalization of $ 2.9 billion, countless users believe that it is more likely that the pumping is below $ 2 billion than peaks above $ 4 billion, so that the chances are placed at 54.3% versus 45.7%.

Another common indicator of technical analysis traders is the average directional index or ADX. Pump’s ADX is 44, which screams ‘strong trend in performance’. ADX measures the trend strength regardless of the direction, with measurements above 25 that confirm established trends and above 40 that indicates an extremely powerful momentum.

At 44 Pump’s ADX traders gives the feeling that there is a long -term bullish trend. In other words, despite a possible correction, there is a reasonable chance of a cup and disadvantage in the graph – the species that is formed from a large crash (in July) and recovery (now) followed by a smaller crash and recovery shortly thereafter.

Because the currency is so young, there are still insufficient data to make an exponential relocation average comparison. But in shorter timetables, the mint went in the territory of “Golden Cross” at the beginning of September.

A Golden Cross is when the average price of an active in the short term crosses over the average price over the long term and it is interpreted by traders on a large scale as a strong bullish signal.

This is important because price action in shorter timetables is often noisier than in longer timetables, but price movements appear on those noisy charts. In other words, the extrapoling of data, it is easy to see why traders would conclude that a bullish is in the game when the averages in the short term go over slower averages in the long term.

De Munt also did a 4x in seven weeks. So there is too.

Main levels to view:

• Immediate support: $ 0.0074 (recent consolidation zone)
• Strong support: $ 0.0066
• Immediate resistance: $ 0.0090 (Psychological level in the vicinity of all time)
• Strong resistance: $ 0.0105 (Next Fibonacci extension and potential breakout -delwit)