PUMP Token Price Hits Resistance: What Does This Mean?
The PUMP token has recently made headlines, surging over 20% within 24 hours. Over the past month, PUMP has climbed more than 60%, catching the attention of crypto enthusiasts. However, a broader perspective reveals a longer-term downtrend as the token remains 37% down over the past three months. This raises the critical question: Is this rally reaching its peak, or is it merely pausing before the next big move?
The Cup-and-Handle Pattern: A Bullish Indication
Market watchers point to a notable technical pattern: the cup-and-handle formation. First noticed on January 13, this pattern indicates a foundational base, followed by a sharp breakout. With a target price projection of $0.0045, the recent rally seems to align with this bullish setup. Notably, even with temporary resistance at the $0.0031 mark, the chart dynamics remain intact, hinting at further upside potential.
Key Indicators Supporting Bullish Momentum
One of the standout observations from the charts is the emergence of an updated cup-and-handle structure. This time, the neckline is upward-sloping, a signal of increasing demand. Momentum indicators, such as the Relative Strength Index (RSI), further highlight this bullish scenario, with RSI climbing higher despite price resistance.
Whale activity also supports this narrative. Although large holders have reduced their positions slightly—3.6%, to be exact—this movement appears to reflect profit-taking rather than panic selling. Additionally, exchange flow data reveals a temporary increase in selling pressure, indicative of consolidation but not a bearish breakdown.
Critical Levels to Watch
The current resistance zone near $0.0031 is proving stubborn. However, if the PUMP price consolidates successfully and breaks above $0.0032, it could trigger a rally toward the long-standing $0.0045 target. Conversely, a drop below $0.0023 could weaken the bullish structure, with $0.0022 being the key support level to prevent invalidation of the setup.
What This Means for Investors
With two cup-and-handle patterns pointing toward the same price target, the alignment strengthens the case for a bullish breakout. Crypto traders should keep an eye on the $0.0032 level, as a breakout here could signal renewed momentum. Whether you’re a long-term investor or a short-term trader, now might be the time to reassess your strategy.
Top Crypto Tip: Stay Informed
For those keen on diving deeper into daily token insights, consider signing up for trusted crypto newsletters, such as Editor Harsh Notariya’s Daily Crypto Newsletter. If you’re looking for tools to monitor portfolio performance actively, platforms like Binance or CoinMarketCap can be instrumental.
Disclaimer
This article is for informational purposes only and not financial advice. Always conduct your research and consult with a professional before making investment decisions. Crypto markets can change rapidly, and past performance does not guarantee future results.
