Pump.fun has failed to surpass $0.00165 on three successive days. [PUMP] Bulls rebounded and drove the coin price up to $0.00169, a new monthly high. Then they pulled back a little.
As of the time this article was published, Pump.fun had risen by 9% in daily charts. The price increase was backed by an increased trading volume of 61%, indicating strong market participation.
Demand for Pump.fun signals an economic recovery
Then, PUMP Traders returned to this important support with strength after the price dropped to $0.0015.
Coinalyze shows that PUMP had a $3.22 Billion buy volume and $2.7 Billion sell volume for the 5th July. As of the date this was written, PUMP’s buy volume increased to $1.14billion against $1.02billion for sell volume.
This altcoin has seen a buy-sell differential of 616 millions. Positive deltas suggest that buyers have significant control over the current spot market. PUMP’s (OI, Open Interest) on the derivatives exchange grew by 12% and reached $144 Million.
The Altcoin’s derivatives volume grew by 40 percent to $149,000,000. The rising OI and volume indicate greater trading activity as traders open new short-term and long-term positions.
As the ratio of Long/Short remained over one, most traders opened up long positions on Binance.
So, speculation also returned on the market. In the past, higher upward momentum has been preceded by sustained demand for both spot and derivatives.
Will the momentum for upward movement continue?
PUMP’s relative strength has been fueled by the recovery of demand. Due to this, altcoins’ upward momentum has increased significantly.
Aroon Up, on the other hand, has risen to 100% while Aroon Down is down to 21%. Aroon Down is also at high levels. This indicates a strong upward trend.
This strength is also confirmed by the ADX/DI, where the positive index has formed a bullish crossing and risen to 16.
Together, these market indicators indicate strong market momentum with a high probability of the trend continuing. If the demand seen across the entire market continues, PUMP could make gains in its charts.
Using this strategy, altcoins will target resistance at $0.0018 and hold $0.0016. Nevertheless, if it fails to reach $0.0016 and close, a further pullback could occur to $0.0013.
Final summary
- Pump.fun rose 9% in a month to reach a new high of $0.00169, before falling back to $0.00165 by the time we went to press.
- PUMP showed a rebound in demand on both the spot and derivative markets as bulls targeted $0.0018.
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Source: ambcrypto.com
