Pump Price News: PUMP’s Recovery Odds Improve as Market Share Rises to 73%

Pump (PUMP) has surged by 8.6% in the past 24 hours and trading volumes currently account for nearly a quarter of the token’s circulating market cap as on-chain data indicates that the protocol has recovered its lead in the Solana-based launchpad market.

In the past week, decentralized exchanges (DEX) within the Solana network have experienced a 30% increase in trading volumes as most assets reached key technical levels, including SOL, whose price rose to $200 once again.

Pump.Fun Retakes the Lead Over LetsBonk

Not long ago, Pump.fun saw its market share plummet to around 30% as LetsBonk.fun, a launchpad created by the Bonk community, promoted an aggressive incentives program to lure traders.

Solana Launchpads Market Share – Source: Jupiter AG

At some point, LetsBonk captured more than 60% of the daily trading volumes in this key segment. However, data from Solana’s top DEX aggregator, Jupiter, shows that Pump.fun has recaptured the lead as it processed $4.56 billion worth of trades in the past 7 days corresponding to a 73.7% share.

A total of 158,414 tokens were minted during this period compared to just 5,914 at LetsBonk. This marks a significant reversal in the latest trend and could be the reason why PUMP is pumping today.

In addition, Pump.fun has started to burn the circulating supply of PUMP by using a portion of its transaction fees. Since the token’s initial coin offering (ICO), a total of 265,180 SOL have been burned with a dollar value of $46 million.

PUMP Bounces Off Key Support – Can It Make It Back to Its Recent Highs?

PUMP’s 4-hour chart shows that a major trend line break occurred on Sunday that led to a drop to the $0.0028 level.

PUMP/USD 4-Hour Chart – Source: TradingView

This level has proven to be a strong area of support as trading volumes started to increase as PUMP hit that mark. We can see how the 14-period moving average has been steadily increasing since then, meaning that this is an area where buying pressure is strong.

The Relative Strength Index (RSI) has stepped out of oversold levels and has now moved above the 14-period moving average in this lower time frame, favoring a bullish outlook in the near term for PUMP.

As a result, we could see the token rising to $0.0037, meaning an 18% upside potential from its current price. This is a key area of resistance as the 200-period moving average (EMA) also stands at that level.

Despite this bullish short-term prediction, the broader trend seems to be bearish. The combination of three key technical indicators (200-period EMA, former trend line support, and horizontal resistance) favors the continuation of the current downtrend after a retest of that key level.

Hence, although we could see PUMP bouncing off $0.0037 to its nearest area of resistance, the odds of a rejection are high and that could unleash a deeper correction that could push the token toward the red area in the chart at $0.0023.