The Pump.fun (PUMP) token sees a remarkable 17% surge in 24 hours, boosted by Ethereum's strength and the overall crypto market. Technical charts indicate a promising pattern that could signal a significant breakout. Traders are now closely monitoring the upper resistance of the descending channel restraining the price for weeks.
On the daily timeframe, Pump.fun remains clearly trapped in a classic downward channel. Defined by two parallel downward-trending trendlines, this structure has guided the price for several weeks in a methodical corrective phase, with each breakout attempt having failed to establish sustained momentum.
Recent dynamics, however, show encouraging signs. After retesting the lower boundary near $0.0032, buyers intervened particularly aggressively, generating significant buying volume. This rebound has allowed the token to regain nearly 40% from this low point and challenge the upper resistance of the channel.
This price compression against the upper limit, combined with an improving sentiment in the broader crypto market, suggests accumulation is taking place. Sellers are progressively losing control while buying pressure intensifies. The 50-day moving average, currently positioned at $0.004829, constitutes the next major technical obstacle to overcome.
If the bulls manage to push PUMP above the upper trendline of the channel and especially reclaim the 50-day MA at $0.004829, a breakout confirmation would be established. In this bullish scenario, analysts identify a major target around $0.01032, representing a potential increase of 130% from current levels.
This historical resistance zone represents a key milestone, and a validated breakout with volume could trigger FOMO positions, accelerating short-term movement. Traders will monitor the RSI and MACD to confirm trend strength.
Conversely, failure to break resistance would likely keep PUMP in its consolidation phase within the channel for additional sessions. In this bearish scenario, the critical support zone to watch sits around $0.0034. Losing this level could reopen the door to retesting the channel bottom, temporarily invalidating the bullish scenario. The risk/reward ratio remains favorable for long positions, provided appropriate stop-losses are placed below identified supports.
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