The whale activity around Pump.fun has increased [PUMP] After a trader had opened a leveraged long of $6 million, the recent recovery reinforced bullish confidence.
According to LookonchainThe position had a leverage of 10x on 1,94 billion PUMP with an unrealized profit of approximately $246,000 already. PUMP traded near $0.003017, up by 8.51% over the past 24 hours. But the whale has set a price for liquidation of $0.002852. That leaves his position vulnerable in the event of a corrective move.
Leveraged bets reflect strong directionalism while highlighting the importance of price support nearby. The whales’ exposure would be preserved if the price remained above the threshold for liquidation.
The bulls could be put under pressure if the price drops to $0.002852.everaged position The bull market will become more unpredictable.
The demand for whales is boosted by a spotty outflow
The latest whale led positioning was enhanced by the exchange flows.
When the analysis was conducted, PUMP There was a $739.56K outflow from the exchanges, meaning that there were more tokens leaving them than coming in. Thus, immediately tradeable exchange supplies dropped as the whale continued to maintain significant leveraged exposure.
The reduced availability of exchange also limits one possible source of short-term pressure to sell. The outflow was supportive of the bullish position, rather than challenging the current whale.
PUMP, in an attempt to maintain its recent gains, reduced the supply of goods on exchange. However, one outflow every day is not sufficient to maintain demand during subsequent sessions.
For a more stable supply and better prospects to push the price higher, we need to continue withdrawing.
How long can the ascending channel of PUMP survive?
The price movement on the daily chart maintained an upward trending channel. PUMP It pushed through $0.003128 of resistance. PUMP was heading towards the $0.00300 mark when sellers in the upper portion of the channel felt the latest pressure.
The price is still far away from $0.002656, a significant support level. The structure of the channel maintained the upward trend despite the recent resistance.
The RSI was 67.66 at the time this article was written, but its average value was a higher 69.37. These readings kept PUMP in the area of stronger purchasing territory, but without exceeding the marked threshold of 73.04. The channel would be strengthened and prices could rise if the price level was sustained at $0.003128.
Losing the $0.002656 support level will weaken this structure, leaving $0.002262 to be the next main level.
PUMP could be pushed higher by overhead liquidity
Another bullish element was the liquidation positions, as liquidity was strongly skewed in favor of PUMP’s current price. You can also find out more about the following: Liquidation Heatmap The liquidations were significant, with a range of $0.00300 to $0.003150.
Liquidity at $0.002895, on the other hand, was low and had a much lower concentration to the downside. The liquidation map therefore created a greater overhead liquidity imbalance than if the structure was below the price.
As leveraged positions face increasing pressure, a renewed price increase could lead to a new upward trend in prices. This $0.003150 zone was very near the chart’s resistance of $0.003128, which further reinforced the importance of this $0.0031 area.
The buyers will need to first reclaim $0.00300 convincingly, and maintain pressure in the zone of resistance. If the project were to be successful, it would fuel liquidation and the demand for whale products that already drives PUMP.
Final Summary
- PUMP’s spot and whale outflows totaling $6 million are keeping buyers well-positioned.
- If you hold $0.002852, it could be used as a starting point to reach $0.003128.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
