Pump.fun Price Prediction: Can PUMP Deliver 3.5x Upside?

Pump.fun (PUMP) has been diving for three weeks now, following a failed breakout above the $0.0051 area.

The token has booked a 16% loss in the past week, as early buyers seem to have been cashing out of their gains.

Nonetheless, PUMP still ranks among the best-performing tokens of 2026 with a 73% gain, as usage levels and fees continue to be quite high.

We accurately predicted this pullback in our latest coverage of PUMP. The Relative Strength Index (RSI) acted as a canary in the coal mine, anticipating a drop to $0.0032 based on historical patterns.

At 46, this daily momentum indicator is still not necessarily in bearish territory, as the price needs to go down a bit further to hit that target.

Pump.fun Had Its Second Best Month on Record in August

Pump.fun has front-run top altcoins like Ethereum (ETH) and Solana (SOL) during this recent rally, breaking past its 200-day exponential moving average (EMA) before these two tokens did.

The reason for this wave of positive momentum has been a spike in fees and protocol usage levels. According to data from DeFi Llama, Pump.fun had its second-best month on record in terms of fee collection.

In August, the platform brought in $145 million. Meanwhile, this dApp has collected $67 million from users already in September and could either match or surpass last month’s levels if usage increases in the next couple of weeks.

These strong collections are coming in at a point when the crypto market could be at the doors of a fresh bullish cycle — imagine where they could end up in a raging bull market.

If we envision monthly fees ranging between $100 million and $200 million as the new normal for this protocol, that would mean a valuation of around 1.4x and 0.7x compared to its fees.

From a fundamental standpoint, PUMP seems heavily undervalued and could be one of the most overlooked projects in the space.

If the market revisits this valuation during the next bull market and pushes its market-cap-to-fees ratio to more plausible levels of around 3x – 4x, similar to the ones seen for Uniswap and other centralized apps, we could see its market cap rising to at least $6 billion at some point. This means a 3.5x upside potential in the long term.

PUMP Should Bounce Strongly Off $0.0032

In the short term, we can see that PUMP is approaching at full speed to the $0.0032 target we set forth in our previous article.

This level should act as a strong bouncing pad for the token, as long as market conditions don’t deteriorate any further. We expect a spike in volatility this week following the Fed’s post-FOMC presser.

However, if that area holds, the token should start to recover in the near term. That said, to fully confirm the beginning of a rally, the price should first break above the $0.0038 area, which seems to be the key resistance to watch in lower time frames.