PUMP Token Price Analysis: Is the Bull Run Sustainable?

The PUMP token continues to capture the crypto community's attention with its positive momentum and significant price gains. The cryptocurrency has recently experienced a notable uptrend, driven by Pumpfun's positive developments, including the TVL surge and increase in daily fees.

Pumpfun Token Soars 50%

In a stunning development, the Pumpfun coin has seen a massive hike of nearly 50% over the past month. Currently trading at $0.004849, the cryptocurrency has soared by 6% in a day and 38% in a week.

Despite this positive sentiment, traders seem less optimistic about the PUMP token as the 24-hour trading volume is now down by 10%, at $368 million. However, with a market cap of $1.71 billion, the crypto takes the 56th spot on CoinMarketCap.

Significantly, over the past two weeks, the Solana-based meme coin has surged by a massive 90%. According to analysts like Ali Martinez , the TD Sequential indicator on the price chart signals a sell signal. This implies that the meme coin’s price might be due for a correction or pullback. The analyst posits that the current positive trend in the memecoin may lead to ‘profit-taking,’ which, in turn, could result in a temporary price drop.

Meanwhile, some market experts believe that the PUMP token is poised to hit more highs as it now stands on its critical resistance level. If Pumpfun cryptocurrency manages to break past $0.0048, then it could see a massive bull run.

What Leads to the Price Hike?

Interestingly, PUMP’s current price surge is driven by the major developments within the Pumpfun ecosystem. At its core is the network’s sustained surge in the Total Value Locked (TVL). DefiLlama data shows that the TVL is now recorded at $271M.

In addition, Pumpfun has stormed to the top of the daily fees chart, with the Solana-based memecoin platform generating $5.73 million in fees over 24 hours, surpassed only by stablecoin giants Tether and Circle. Also, the annualized fee has reached $641 million, with the cumulative revenue at $788 million.

It is noteworthy that the network’s significant growth has propelled the PUMP token price to a safe zone. However, its future remains uncertain, and only time will tell whether it will maintain this bullish momentum.