Pump.fun’s Massive Buybacks Fuel $PUMP Surge, But TD Sequential Warns of Pullback

$PUMP surged over 90% in two weeks, nearing key resistance at the 1.0 Fibonacci level.

TD Sequential flashes a sell signal after the rally, indicating possible trend exhaustion.

Pump.fun’s $1.8M daily buybacks and whale accumulation continue to support bullish momentum.

Pump.fun’s $PUMP skyrocketed fueled by massive $1.8M daily buybacks and whale accumulation, yet a TD Sequential sell signal warns traders to brace for a potential short-term pullback.

Bullish Momentum Meets Technical Caution

$PUMP has seen a meteoric rise, jumping from $0.002965 on August 24 to $0.004885 as of September 6, according to TradingView data. The rally, backed by consistent volume and growing whale accumulation, faces its first major technical challenge. The price recently tapped the 1.0 Fibonacci extension at $0.004947 — a key resistance zone that previously triggered consolidation.

A TD Sequential “green 9” candle has now formed on the 12-hour chart.This pattern is a common short-term sell signal, and the red C13 candle confirms it—meaning a pullback and profit-taking might happen soon.

Despite the warning, the trend remains intact. The chart continues to form higher highs and higher lows, supported by strong 4-hour MACD momentum and a rising RSI, now at 71.49 — just over the overbought threshold. Traders need to watch the $0.00495 mark closely—it could either hold as resistance or break for a bigger move.

Big Buybacks and Whale Buying are Driving the Rally.

According to on-chain data from Pump.fun, over $12.2 million worth of $PUMP tokens have been bought back between August 24 and September 5.The platform is spending $1.8 million daily on buybacks—that adds up to about $657 million a year, which is nearly 14% of the token’s total value.

This aggressive accumulation is impacting supply. At the current pace, 40% of the circulating supply could be removed within a year. On August 28 alone, 752.1 million tokens were purchased at a low of $0.003046. By September 5, the price had climbed to $0.004622, marking a 55.9% gain in under two weeks.

Whale wallets also increased their holdings by nearly 600 million tokens in the past week, according to data from Nansen. Public figures on-chain added over 36 million tokens during the same period, signaling strong conviction from influential participants.

The wider crypto market got a boost after a weaker U.S. jobs report raised chances of a Fed rate cut. With a 90% likelihood, this move usually fuels riskier assets like crypto.

The post Pump.fun’s Massive Buybacks Fuel $PUMP Surge, But TD Sequential Warns of Pullback appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.