Pump.fun [PUMP] has surged by 7.9% in the last 24 hours, with a 9.61% increase in its daily trading volume as per CoinMarketCap data.
Previously, AMBCrypto had indicated a reversal signal for the memecoin, with a break in a two-week trendline resistance.
Moreover, Spot outflows have indicated aggressive accumulation, while the long-term price action continues to show a bearish swing structure. Can PUMP bulls successfully defend the $0.0017 support level once again?
PUMP’s price action has been uncertain recently
Source: PUMP/USDT on TradingView
Since December, PUMP has been moving between the $0.0017 and $0.0034 levels. It has shown various internal structure changes within this range, with the latest one occurring on February 5th.
The breach of the $0.00225 higher low tilted the bias bearishly. Currently, the bearish bias remains unchanged.
Furthermore, the $0.0017 local support level from late December 2025 has been maintained, with the OBV moving sideways in the past month, indicating a lack of dominance from either bulls or bears.
The RSI stands at 44, hinting at a slight bearish momentum in recent days, although it does not guarantee a drop below the local support level.
Short-term outlook for PUMP
Source: PUMP/USDT on TradingView
Currently, PUMP has been trading within a range of $0.00170 to $0.00197, facing rejection from the range highs and moving lower. Technical indicators do not strongly favor either bulls or bears at this time.
Trading strategy for traders – Sell on strength
In the short term, traders are advised to stay on the sidelines. The range formation and liquidity clustered near the lows provide a buying opportunity.
However, a breakout above the range highs may be short-lived due to the higher timeframe bias. Any move towards $0.0022-$0.0024 would likely be a liquidity hunt, expected to reverse once completed.
To sustain an uptrend, genuine Spot demand with high Spot buying pressure is crucial to break through overhead liquidity clusters.
If such demand does not materialize, traders should be prepared to sell into short-term PUMP strength.
Summary
- The daily outlook for PUMP remains bearish.
- Traders can stay cautious in the short term due to the range formation. While a short squeeze is possible, a breakout should be approached with caution.
Disclaimer: The information provided is the writer’s opinion and does not constitute financial, investment, trading, or any other form of advice.
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