PUMP price stalls despite 20% volume surge- Can whales restart the rally?

Pump.fun (PUMP) climbed to $0.0015 on the 28th of June, driven by renewed market participation. However, shortly after, the altcoin retraced to a local low of $0.0013. Over the same period, trading volume surged 20%, signaling heightened market activity as traders took profits.

Whale scoops up 242.66M PUMP

AMBCrypto reported earlier that PUMP made gainsdriven by increased market participation. This market activity has now shifted to high-net-worth investors. In fact, whales are starting to accumulate PUMP amid the extended weakness.

According to Lookonchain, a whale returned after a year of dormancy and began accumulating PUMP. The whale spent 5,000 SOL, worth $358K, and purchased 242.66 million PUMP.

The whale appears to be shifting away from SOL and turning to PUMP as a better option. On the price charts, this move toward PUMP signals growing market confidence and suggests expectations of further gains.

Furthermore, exchange activity also echoed this growing demand. The altcoin’s Spot Netflow turned negative after earlier rising to positive.

At press time, the Spot Netflow was -$688k, a significant drop from $1.4 million. Such a drop suggests that profit-taking, which caused the market pullback, has already eased. Often, such market behavior has preceded increased scarcity, which has historically boosted price performance.

Network usage signal recovery

In addition to surging holder count, PUMP has recorded a significant jump in the Daily Active Addresses as it jumped to a high of 9.2k.

The last time PUMP recorded such a high number of active daily users was nearly a month ago. This suggests that the network activity is also recovering. Typically, such strength in fundamentals has preceded better performance on an asset’s price charts.

What do momentum indicators suggest?

Although demand for whales and new users has emerged, market momentum remains weak on both fronts. For instance, a look at the Relative Strength Index (RSI) showed that the indicator is rising but remains below 50 as of writing.

This suggests that although buyers have returned, demand remains insufficient to trigger an uptick. The DMI  indicator further confirmed this market momentum.

Notably, the ADX, ADXR, and –DI hovered near 21, while +DI was around 18. This setup indicates that both upward and downward momentum are significant. As a result, sideways movement is likely. If that plays out, PUMP could trade between $0.0012 and $0.0015.

However, if the rising whale demand materializes and positively impacts the market, the altcoin could flip $0.0015 and eye $0.0016.

Final Summary

• A whale returned after a year of dormancy and purchased 242.66 million PUMP worth $358k.
• PUMP momentum remains weak despite the recovery in demand and structural strength.