PUMP’s 40% Rally Shows Strong Buy-Side Momentum as Bulls Eye Next Leg Higher

PUMP, the native token of the Solana-based memecoin launchpad Pump.fun, has gained nearly 40% in the past week, extending its strong upward momentum. 

Since the beginning of September, the token has traded within an ascending parallel channel, reflecting sustained buy-side pressure. With bullish dominance climbing, PUMP appears poised for further growth in the near term.

Steady Buying Pressure Lifts PUMP

Readings from PUMP’s one-day chart show that it has trended within an ascending parallel channel since August 29. This channel emerges when price consistently makes higher highs and higher lows within two parallel trendlines. 

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It reflects a PUMP market dominated by steady buying pressure, with traders willing to accumulate at higher levels while sellers are gradually pushed out.

Technical indicators further strengthen this outlook. On the daily chart, PUMP trades above its Parabolic Stop and Reverse (SAR), a sign that demand continues to outweigh selling pressure.

The Parabolic SAR indicator identifies an asset’s potential trend direction and reversals. When its dots are placed below the price, the market is in an upward trend. It indicates the asset’s price is rising, and the rally may continue.

Also, PUMP’s Smart Money Index (SMI) is trending higher, showing strong backing from key holders. Currently, it stands at a two-month high of 1.0005. 

The SMI tracks the behavior of institutional investors or experienced traders by comparing morning selling, often led by retail traders, against afternoon buying, typically driven by institutions. 

A rising SMI indicates accumulation by smart money, preceding significant price moves. For PUMP, the uptick in SMI suggests key holders are backing the rally, supporting the bullish outlook.

PUMP Bulls Target $0.006882 as Rally Gains Strength

These signals suggest that PUMP’s current rally is supported by significant strength, increasing the probability of further growth in the sessions ahead. In this scenario, the altcoin could extend its gains toward its all-time high of $0.006882.

However, a dip in buying pressure could trigger a decline to $0.005117.