Pump.fun (PUMP), the native token of the popular Solana-based launchpad protocol, is showing significant positive momentum in the cryptocurrency market. Over the past week, PUMP has experienced a surge of nearly 30%, driven by robust on-chain growth and a noticeable improvement in its price structure.
While the broader market sentiment, with Bitcoin and Ethereum maintaining stable prices, has provided some support, PUMP's recent performance appears to be more than just a sympathetic market movement. Both fundamental metrics and technical indicators are beginning to align, suggesting that the token might be preparing for a significant upward move if a key resistance level is successfully breached.
On-Chain Momentum Is Building
Beyond its price action, Pump.fun's protocol activity has been accelerating at an impressive rate. Data from DefiLlama indicates that Pump.fun ranked as the third-highest fee-generating crypto protocol over the past 30 days, accumulating approximately $78.78 million in fees.
This strong performance places Pump.fun ahead of other notable protocols like Hyperliquid and positions it just behind the stablecoin giants Tether and Circle. Consistently high fee generation is a strong indicator of sustained user demand, robust protocol usage, and growing economic relevance, all of which are often precursors to longer-term price expansions.
Rounding Bottom Pattern Takes Shape
From a technical analysis standpoint, PUMP's daily chart is currently exhibiting a rounding bottom pattern. This is a classic bullish reversal structure that typically emerges after extended downtrends and prolonged accumulation phases.
The pattern began to form after PUMP encountered resistance and was rejected near the $0.003396 region late last month. This rejection led to a sharp sell-off, driving the price down towards the $0.0017 area. However, sellers gradually lost momentum at these lower levels, and the downward pressure began to fade.
Over time, the price action stabilized, volatility compressed, and PUMP started to curve upwards, forming the smooth, rounded base characteristic of this pattern. Recently, PUMP has reclaimed its 50-day moving average, trading near $0.002453, a level that had previously acted as a significant resistance. Since then, the price structure has improved, with a consistent formation of higher lows.
Currently, PUMP is trading around $0.002875 and is approaching a well-defined resistance zone situated between $0.003107 and $0.003396. This zone represents the neckline of the rounding bottom pattern and has previously capped upside attempts multiple times, making it a critical area to monitor.
What’s Next for PUMP?
If PUMP can achieve a clear daily close above the $0.003107–$0.003396 resistance zone, it would serve as confirmation of a breakout from the rounding bottom formation. A successful breakout, followed by a retest of this zone as support, would significantly strengthen the bullish outlook and indicate the commencement of a new upward trend.
Based on the depth of the rounding structure, the measured move projection suggests a potential target around the $0.005092 region. From current trading levels, this would represent an approximate upside of 76%, which aligns well with typical post-breakout expansions observed in this type of pattern.
Nevertheless, patience remains a crucial factor. Until confirmation of a breakout occurs, short-term pullbacks, including a dip towards the rising base of the rounding structure, remain a possibility. Such movements would not invalidate the bullish setup, provided that the price continues to hold above established higher-low support levels.
Bottom Line
Pump.fun is currently at a critical inflection point. Strong on-chain fee growth, an improving market structure, and a well-defined bullish reversal pattern all indicate that PUMP may be positioning itself for a larger upward move, contingent on bulls reclaiming and sustaining the neckline resistance.
For the time being, the $0.003107–$0.003396 zone remains the key level to watch. The price action around this area will likely determine whether PUMP transitions into a sustained bullish phase or continues to trade within its current range for an extended period.