Rapid surge of PUMP token on platform Pump.fun might occur ahead of schedule.
In the world of cryptocurrencies, the PUMP token, associated with Pump.fun, a Solana-based platform, has been making waves due to its recent volatility. This article delves into the reliability of the 'Cup and Handle' pattern and potential price increases.
Current Market Situation
Pump.fun has regained dominance in Solana's launchpad market, securing a market share of about 73.7%. This dominance could potentially bolster the token's price stability and growth prospects. The PUMP token's price has fluctuated, with recent prices ranging from $0.003 to $0.004. However, it faced a significant drop to $0.0028 due to market volatility.
Technical Indicators
The Relative Strength Index (RSI) has stepped out of oversold levels and is now above the 14-period moving average, suggesting a short-term bullish outlook for PUMP. The 14-period moving average is increasing, indicating strong buying pressure at the $0.0028 support level. However, the 200-period EMA stands as a resistance at approximately $0.0037, which could limit further price increases.
Cup and Handle Pattern
The 'Cup and Handle' pattern, a common bullish reversal pattern, could be relevant if observed in PUMP's price chart. The cup phase began in late July, with a drop from $0.003645 to a low near $0.0022, followed by a rebound in a rounded formation. The handle phase, a slight consolidation likely eliminating weaker positions, followed after the rebound.
Short-term Bullish Outlook
The RSI and moving averages suggest a potential short-term increase to $0.0037, representing an 18% upside potential from its recent lows. However, the broader trend remains bearish, with resistance from the 200-period EMA and potential for a deeper correction after testing key levels.
Conclusion
While PUMP shows potential for short-term gains due to its strong market position and technical indicators, the broader market trend is bearish. A decisive close above $0.0040 would confirm the breakout of the 'Cup and Handle' pattern. It is crucial to monitor ongoing market conditions and technical indicators for confirmation.
Investing in cryptocurrencies always involves risk, and market conditions can change rapidly. It is essential to conduct one's own research and analysis before investing.
This article was written by Simon Dumoulin, a cryptocurrency enthusiast since 2019.
For those interested in buying the PUMP token, Bitget offers a platform with over 100 payment methods, including Advcash and Wise, with no fees for card purchases. To buy PUMP on Bitget, one needs to sign up, verify their account, deposit funds, and then buy the token through a market or limit order.
Remember, the crypto markets are volatile and unpredictable in the short term. Always monitor key levels and take profits in case of an uptrend when investing in cryptocurrencies. The current price of the PUMP token around August 2025 is approximately $0.00347.
[1] Data as of August 2022. [2] Price data sourced from CoinMarketCap. [4] Market dominance data sourced from Solana Beach. [Note: The current price of PUMP is just below the critical neckline. Volume will be a crucial element to watch, as a sustained breakout supported by strong buying pressure could attract momentum traders and accelerate gains.]
The dominance of Pump.fun in Solana's launchpad market could propel the PUMP token towards price stability and growth, possibly making it an attractive investment opportunity in the domain of technology-driven finance. In the context of the cryptocurrency market, the 'Cup and Handle' pattern might emerge as a potential indicator for the PUMP token, suggesting a possible price increase.
