PUMP breaks through 40% - Opportunity to break the peak or FOMO trap?

PUMP, the native token of the memecoin launching platform Pump.fun on Solana, has recorded an increase of over 42% in just one week, indicating strong breakout momentum. Since the beginning of September, this token has maintained trading within a gradually ascending parallel channel – a sign of sustainable buying pressure. With the bullish trend increasingly prevailing, PUMP is expected to further extend its upward momentum in the near future.

Stable buying pressure enhances PUMP value

The daily chart of PUMP shows that the price has been in a gradually ascending parallel channel since August 29. This pattern forms when the market continuously establishes higher highs and higher lows within the range of two parallel trend lines, reflecting a steady inflow of buying.

This shows that the PUMP market is being dominated by stable demand: investors are willing to accumulate at higher price levels, while selling pressure is gradually being pushed back.

The gradually increasing parallel channel of PUMP | Source: TradingViewThe technical signals further reinforce this optimistic scenario. On the daily timeframe, PUMP is currently trading above the Parabolic Stop and Reverse (SAR) – an indicator commonly used to identify trends and reversal points. When the SAR dots are below the price line, the bullish trend prevails and the potential for continued upward momentum is maintained.

The Parabolic SAR indicator of PUMP | Source: TradingViewAdditionally, the Smart Money Index (SMI) of PUMP is showing a noticeable increase, currently reaching 1.0005 – the highest level in two months. This index compares morning selling activity (typically dominated by retail investors) with afternoon buying activity (typically coming from institutions). The increase in SMI indicates that "smart" money is actively accumulating, signaling the potential for significant price volatility.

SMI of PUMP | Source: TradingViewWith PUMP, the slight but stable improvement of SMI confirms that key stakeholders are supporting the bullish trend, thereby further strengthening the bullish outlook in the near future.

Bull PUMP targets 0.0068 USD as bullish momentum accelerates

The latest technical signals indicate that PUMP is being supported by a solid growth platform. Demand remains overwhelmingly strong, while "smart" money continues to accumulate, creating a favorable balance for the buyers. In this context, the scenario of PUMP soon reaching the historical peak of 0.0068 USD – an important resistance level that the market is particularly focused on – is becoming increasingly feasible.

The bullish trend of PUMP is not only reflected through the gradually ascending parallel channel model but is also reinforced by important indicators such as the Parabolic SAR and the SMI index. The fact that the price remains above the SAR line indicates that buying pressure is still controlling the situation, while the SMI reaching its highest level in two months confirms the increasingly clear participation from institutions and large investors.

This is a rare combination: when institutional money flow and retail sentiment agree, the market often witnesses strong breakouts, which can even lead to explosive bullish phases.

PUMP Price Chart | Source: TradingViewIf the current trend continues, PUMP is likely to challenge the resistance level of 0.0068 USD again. Breaking this level with high liquidity could open up a new growth phase, as FOMO (fear of missing out) stimulates new capital inflow into the market.

Before reaching the all-time high, this altcoin may face profit-taking pressure around 0.0063 – 0.0065 USD. This price range has previously recorded heavy trading volume and has often acted as a resistance level in the past.

On the contrary, in the event that the market experiences a weakening of demand, the 0.0051 USD level will be an important support that needs to be protected. Maintaining this price level means that the long-term bullish structure remains intact. If this support level is broken, PUMP could retreat further to 0.0048 USD, coinciding with the bottom of the ascending parallel channel.

Overall, the market balance is still clearly tilted towards the bulls. The stability of buying power, combined with support from smart money flows, provides a solid foundation for a bullish scenario. However, to confirm a real breakout, PUMP needs to surpass the 0.0068 USD mark with explosive trading volume. Conversely, any signs of weakness from the buying side could lead to a short-term correction, bringing the price back to the support zone before regaining upward momentum.

Annie