Since reaching $0.0016, Pump.fun has shown upward momentum, reaching a local high of $0.0019. In fact, the altcoin, as of this writing, Pump.fun [PUMP] traded at $0.001906, down 3.02% on the daily charts.
Pump.fun whale scoops up 947 million PUMP tokens
With PUMP holding below $0.002, it has created a perfect buying opportunity for large entities, especially whales.
According to Lookonchain, a newly created wallet purchased 947.31 million PUMP worth $1.86 million. This whale has been on a buying spree for the past two days.
Usually, when a whale enters the market to accumulate during a period of weakness, it shows confidence, anticipating market recovery.
Significantly, this whale purchase is not an isolated case, as large holders have been aggressively accumulating. According to Nansen data, Top Addresses added 4.3 billion PUMP tokens over the past 24 hours.
Source: Nansen
Historically, increased whale accumulation has strengthened an asset’s upside momentum, leading to higher prices. Thus, if Pump.fun whales continue buying, the demand-side liquidity could help PUMP break out of the current bearish trap.
Coupled with that, the team has continued to pivot the market, absorbing the market pressure through buybacks. Over the past 24 hours, Pump.fun spent 99% of the daily revenue, or $1.2 million, and purchased 15.011 PUMP tokens.
Source: Token Terminal
The team’s continued buybacks show its commitment to the asset, which helps boost demand-side pressure, a key driver of price recovery.
Downside risk still remains elevated
While whales continue to accumulate, other market participants have shown a tendency to cash out even slight gains. On March 2, the altcoin saw 1.7 billion in Spot Sell Volume compared to 1.2 billion in Buy Volume.
Source: Coinalyze
This imbalance left the market with a negative Buy Sell Delta of -500 million, a clear sign of aggressive Spot selling. Often, increased selling pressure from the spot market accelerates downside momentum.
In fact, the altcoin’s downside momentum continues to hold the market strongly, as evidenced by the Stochastic Momentum Index (SMI). Looking at the indicator, it still sits within the negative zone, suggesting that sellers have total control of the market.
Source: TradingView
As such, while buyers, especially whales, have attempted to absorb pressure, their demand remains insignificant to lift PUMP from the prevailing trend.
Thus, the continuity of the prevailing sentiment could see PUMP drop towards $0.0016 again. However, if the whale demand helps the altcoin close above $0.0019, it will be strong enough to target $0.0022.
Final Summary
- PUMP rebounded from $0.0016 to a local high near $0.0019, but remained below the $0.002 threshold.
- A newly created wallet accumulated 947.31 million PUMP worth $1.86 million over two days.
Source: https://ambcrypto.com/pump-fun-can-1-8mln-whale-buying-help-pump-target-0-0022/
