PUMP Price Rally: Whale Sell-Off Signals Potential Downturn?
PUMP Bull Run at a Crossroads? Whale Activity Sparks Concern
Pump.fun's native token, PUMP, has experienced a significant 150% price increase over the last three weeks, attracting considerable attention. However, recent activity from a major holder is casting doubt on whether this rally can continue.
A wallet address identified as "3xAMM," holding a substantial 2.5 billion PUMP, has begun taking profits, leading to concerns about a potential market correction.
Whale Dumps $1.53 Million in PUMP
According to data from Lookonchain, the "3xAMM" wallet recently deposited 250 million PUMP, worth approximately $1.53 million, on Binance. Despite this substantial sell-off, the wallet still holds a significant 2.25 billion PUMP, valued at around $13.6 million.
Interestingly, even with the whale's activity, PUMP's price has continued to climb, registering a 3.85% gain in the past 24 hours, trading near $0.006325. However, trading volume has decreased by 45% during the same period, suggesting a lack of conviction among traders to push the price higher.
Technical Analysis: Key Resistance Ahead
Technical analysis indicates that PUMP is approaching a critical resistance level at $0.0070. This is the same level from which the token experienced a 63% drop after its initial launch. The presence of a long upper wick on the daily candle also suggests increasing selling pressure.
A bearish candlestick pattern forming near the $0.0068-$0.0069 level could signal a potential price reversal, potentially driving PUMP down to previous support levels around $0.005 or the breakout level of $0.0042.
Currently, the Bollinger Bands on the daily chart are widening, with the price near the upper boundary, hinting at a possible reversal. Additionally, the Relative Strength Index (RSI) has entered overbought territory, further suggesting that the asset might be overextended.
On-Chain Data Reveals Mixed Signals
Data from CoinGlass shows that exchanges have seen consistent inflows of PUMP tokens over the past five trading days. In the last 24 hours, $5.90 million worth of PUMP has been deposited on exchanges, potentially signaling increased selling pressure from investors and long-term holders.
Despite this, traders seem to be placing significant bets on long positions. CoinGlass data reveals major liquidation levels at $0.00597 and $0.0067, with $12.57 million in long positions and $3.72 million in short positions overleveraged.
Overall, on-chain and technical indicators present a mixed picture. While short-term sentiment may appear bullish, whale activity and increasing exchange inflows suggest a potential shift towards bearish sentiment in the longer term.
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