Pump.fun is showing the first signs of a potential recovery after weeks of decline, with price trends poised to stabilize despite widespread market resistance.
The change in investor behavior is particularly noteworthy, with recent on-chain data revealing early signs that sentiment may finally be turning in the token’s favor.
Pump.fun native token influx of notes
Chaikin Money Flow (CMF) highlights important developments. PUMP recorded its first inflow in more than three weeks. This change suggests that investors are accumulating assets at lower price levels after a long period of capital outflows. Such an accumulation phase often signals the early stages of a trend reversal, especially for highly speculative assets.
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Investor participation is essential for PUMP, whose rise has historically been driven by rapid explosions in retail demand. If these inflows continue to increase, liquidity could increase and reduce selling pressure.
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The squeeze momentum indicator supports this improving sentiment. The appearance of a black dot confirms that the PUMP is in the squeeze phase. The squeeze phase is a period of reduced volatility that typically precedes a breakout. More importantly, this indicator shows momentum shifting from bearish to bullish, and rising green bars indicate an emerging uptrend.
If the squeeze lifts while bullish momentum prevails, PUMP could benefit from increased volatility that fuels an upward move. Historically, this situation has been a precursor to a strong short-term rally.
Pump prices face resistance
PUMP is trading at $0.003209, just below the major resistance level at $0.003409. Clearing this level is essential to confirm the recovery and start a broader climb. If this barrier cannot be broken through, there is a risk that stagnation will occur again.
Given the improvement in CMF readings and the reversal of momentum, PUMP could move above $0.003409 in the coming days. A successful breakout could target $0.003757, which could be extended to $0.004015 if bullish pressure accelerates.
However, if this pattern fails or investors exit prematurely, PUMP could lose support and fall to $0.002783. A break below this level would invalidate the current bullish theory and erase recent gains.
