Pump.fun Recaptures Lead Over Bonk – Is PUMP About to Break Past $0.40?

The official token of Pump.fun (PUMP) has exploded by nearly 10% in the past 24 hours after the protocol shared news about the progress of its token burn program.

In an X post viewed by nearly 200,000 users, the launchpad said that it has eliminated $58 million worth of PUMP to date, meaning a reduction of 4.4% of the token’s circulating supply.

$PUMP Purchases by Pump.Fun – Source: Pump.Fun Website

Same as LetsBonk, Pump.fun uses the revenue it collects from transaction fees to buy PUMP tokens and burn them. This shrinks the asset’s available supply and should contribute to increasing its price in the near term.

Meanwhile, data from Jupiter AG, the largest DEX aggregator in the Solana blockchain, Pump.fun has recaptured its lead in the launchpad segment with a 60% market share in the past 30 days.

The platform processed $16.7 billion in trading volumes during this period compared to $6.5 billion handled by LetsBonk.

The two platforms currently account for 83% of the launchpad market and competition may heat up in the future as new incentive programs are launched to attract traders and increase volumes.

Project-Specific and Macro Tailwinds Could Push PUMP Higher

Pump.fun has been expanding its ecosystem and reach through the launch of new protocols like PumpSwap, a decentralized exchange (DEX) that substituted Raydium as the platform’s ally to graduate the best meme coins created via Pump.fun.

PumpSwap already has a total value locked (TVL) of $269 million. Although this figure pales in comparison to Raydium’s $2 billion+ TVL, it is a key puzzle piece in Pump.fun’s roadmap and contributes to producing higher revenues and fees that could be subsequently used to burn more PUMP tokens.

Meanwhile, last week’s speech from the head of the Federal Reserve, Jerome Powell, confirmed that the central bank could be ready to lower rates for the first time this year. This favors a bullish outlook for risky assets like cryptocurrencies and could further accelerate the beginning of altcoin season.

At a point when Solana (SOL) is surging and both Ethereum (ETH) and BNB Coin (BNB) have made new all-time highs, many other altcoins could start to play catch-up and get propelled by this wave of positive momentum.

PUMP Offers 30% Upside Potential If Bullish Breakout is Confirmed

As we highlighted in our latest PUMP price prediction, the $0.0028 level was a key support to watch from which the price could bounce as Pump.fun recaptured the lead of the launchpad market.

PUMP/USD 4-Hour Chart (Kraken) – Source: TradingView

The token bounced two times from that level and briefly broke below it on Monday. However, it has recaptured that area and now seems to be on track to hit $0.0036 – our latest target for PUMP.

Today’s strong uptick and trading volumes (up 36% in the past 24 hours) could result in a bullish breakout of PUMP’s 200-period exponential moving average (EMA) and result in a move to $0.0040 in the near term.

Meanwhile, if bullish momentum accelerates, the price could rise to $0.0047 next, meaning an upside potential of around 30% if one buys after the breakout is confirmed.

The Relative Strength Index (RSI) has been steadily climbing as positive momentum keeps gaining traction.

If the price action rejects a move above the 200-period EMA we may also witness a retest of the $0.0027 level but that seems highly unlikely considering today’s strong price hike.