PUMP Token Sees 5% Dip Amid Whale Sell-off: What’s Next for the Meme Coin?
PUMP, one of the most talked-about meme coins on the Solana blockchain, has experienced a whirlwind month with over 120% gains. Yet, recent whale movements caused a 5% dip, raising questions about the coin’s future trajectory. Let’s dive into the analysis to understand what’s shaping PUMP’s current dynamics.
Whale Selling Sets the Stage for a Correction
In the past 24 hours, whales unloaded approximately $8.26 million worth of PUMP tokens, cutting their holdings by 5.58%. This has led to an increase in exchange balances by about 5.88 billion tokens, signaling potential profit-taking by retailers. Even well-known wallets reduced their PUMP holdings by 8.51%, contributing to the selling pressure.
Overall, nearly $55 million worth of selling has placed a temporary hold on PUMP’s upward momentum. However, key indicators suggest this is a pullback, not a collapse.
Key Indicators Signal Bullish Resilience
Despite the sell-off, two critical factors indicate that PUMP’s bullish rally might still be intact:
- Smart Money Positioning: Wallets tagged as experienced traders remain higher than their positions earlier in September. This suggests that savvy investors are not exiting but instead holding onto the coin.
- Retail Demand: The Money Flow Index (MFI), which measures price and volume to gauge buying pressure, recently reached 97.5. This is higher than its peak on September 8, a date that preceded a 65% rally. Rising MFI suggests that retail dip buyers are still stepping in, even as whales sell off.
Short-Term Levels to Watch: Support and Resistance
The 4-hour chart highlights key levels for PUMP’s near-term performance:
- Critical Support: $0.00660 and $0.00621 are the immediate supports to watch. Any pullback to these levels would not disrupt the broader bullish channel.
- Resistance to Reclaim: Breaking above $0.00876 with a confirmed candle close could signal the end of the recent correction, setting targets at $0.00940 and $0.009924.
As long as PUMP maintains its ascending channel, the bullish momentum remains intact. However, a fall below $0.00575 could shift the bias entirely to bearish.
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Disclaimer
This article is for informational purposes only and should not be considered financial or investment advice. Market conditions can change rapidly, and readers are encouraged to do their own due diligence before investing. Always consult with a professional for tailored advice.
