Key Takeaways:

• PUMP price fell over 44% this week despite bullish market trends.
• The Wyckoff pattern hints at a potential rebound after the current sideways movement.
• A possible 44% price rally targeting the $0.0055–$0.0060 resistance zone is ahead.

Pump.fun (PUMP) is showing signs of a reversal following a rocky week in which the token dropped most of its value. Despite the general crypto landscape having bullish momentum, the token experienced a steep 44.02% decline in the past week. 

Recent chart movement and trends show the token potentially lining up for a strong reversal. Now the token is trading at $0.003769. 24-hour volume for PUMP is $586.79 million, a 16.73% loss.

Its current cap is $1.33 billion. There is still short-term volatility in the picture, but indicators show a likely reversal in momentum.

PUMP’s Recent Price Action Reflects Bearish Pressure

From the 7-day candlestick chart, PUMP has been in a downtrend. The token took a sharp dip from more than $0.0065 down to the price level of $0.0036.

Such a dip was triggered by disciplined selling pressure, as several red candlesticks re-established bearish dominance. A small stabilization procedure was noted in the area from $0.0042 to $0.0048, where purchasing was in a temporary presence.

However, renewed selling drove the price even lower, propelling the token into the current range of consolidation at $0.0036 and $0.0039.

The volume too has decreased, showing lost momentum, except in the last dip, where it saw a minor spike. While the overall trend remains bearish, the sideways price movement could signal the building of a base.

Also Read: Pump.fun Faces Delay in Token Sale Amid Mounting Legal Troubles

Wyckoff Pattern Suggests Accumulation and Potential Breakout

Technical indicators on the 1-hour PUMP chart appear more positive. Crypto analyst Captain Faibik pointed out recently that the token has probably bottomed out and may be ripe for a strong upsurge.

The chart is in a Wyckoff accumulation process: after the long downtrend, PUMP had reached a horizontal area where the buyers had been absorbing the current supply.

This was then succeeded by a “spring” phase, a minor dip beneath the range that likely led weaker hands to sell, before the price quickly recovered back into the range.

Such price action is typical in accumulation phases before a bullish breakout. The token is currently at the test of the downward trendline resistance and suggests the breakout could be imminent.

In the bullish scenario, the token will see the price increase by about 44.10%, aiming at the range of $0.0055-$0.0060. While there is still no confirmation of complete reversal, the pattern inclines towards believing the basic forces within the market will reverse soon on the buying side.

Pump.fun remains amid bearish sentiment, but technical patterns and movement in the marketplace indicate a bullish reversal could lie ahead.

Traders and investors are therefore closely watching developments in the hope that the consolidation will lead to a breakout and potentially give the token much-needed momentum in the days ahead.

Also Read: Pump.fun Sends 132K SOL to Kraken in Recent Selloff