The memecoin PUMP is under heavy selling pressure, but Pump.fun is not backing down. Through massive buybacks and major updates, the platform is striving to regain investor confidence and solidify its dominance in the Solana memecoin market.
The recent price volatility of PUMP reflects several market dynamics. A key event was the significant transfer of 2.5 billion $PUMP tokens, valued at over $9 million, to the OKX exchange.
Such massive transfers to centralized exchanges often signal potential selling pressure, as tokens are typically liquidated in these cases. However, Pump.fun has implemented an aggressive buyback program to counterbalance this bearish trend.
In one week, Pump.fun purchased nearly $8.4 million worth of $PUMP tokens, representing 97.29% of its revenue during this period. In total, the platform has bought back $33 million worth of $PUMP, effectively removing 0.729% of the total supply.
Beyond token movements, recent updates to Pump.fun’s SDK suggest an upcoming token reward system. This enhancement further strengthens Pump.fun’s dominant position, currently holding 91.8% market share, far ahead of competitors like LetsbonkFun.
Despite these initiatives, the technical analysis of $PUMP shows signs of weakness. The token has formed a classic head and shoulders pattern, resulting in a clean break of the neckline and triggering its projected downside target.
After forming the left shoulder near $0.0034, $PUMP rose to a high just above $0.0040 (the head), before losing momentum and establishing a right shoulder at $0.0038.
This symmetry, combined with declining relative strength and weakening volume on the subsequent push, signaled the breakdown that followed. The neckline, clearly drawn at $0.00340, finally gave way during the August 18 session with a strong bearish impulse that pushed the price toward $0.0025, the technical target measured from the height of the breakdown.
PUMP has broken its bullish trendline, but more importantly, was rejected from its major liquidity zone at $0.0040. This indicates selling pressure remains dominant with not enough buyers to reverse the medium-term trend. New lows are therefore increasingly likely in the coming weeks.
Although Pump.fun has shown great resilience, regaining more than $791 million in revenue since the 2024 attack, $PUMP’s current technical structure warns of a possible continuation of the decline, unless demand strengthens around the current consolidation zone.
Despite the turbulent context for $PUMP, Pump.fun demonstrates its ability to adapt and bounce back. Its ambitious buyback and update initiatives, coupled with its dominant position in the Solana memecoin market, make it a key player to watch closely.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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