Pump.fun’s native token $PUMP has tumbled to $0.003138 as meme coins took a beating on August 18, but smart money isn’t panicking. While charts are painted red right now, $PUMP’s market dominance and aggressive token strategies suggest this bloodbath may be temporary.
When meme coin mania reignites, this could be the first rocket to launch—if buyers step in before support cracks completely.
Pump.fun ($PUMP): Volatility, Strategic Buybacks, Upgrades, and a Resilient Comeback
The recent price volatility of $PUMP is a reflection of several market dynamics at play.
A key event contributing to this was the major transfer of 2.5 billion $PUMP tokens, worth over $9 million, to the OKX exchange.
This marked one of the largest single-day exchange deposits since its July ICO. Typically, such large transfers hint at potential selling pressure, as tokens moved to centralized exchanges are often liquidated.
In contrast, Pump.fun has been working to counterbalance selling sentiment with an aggressive buyback program. The project has already purchased around $8 million worth of $PUMP tokens, contributing to a broader $33 million buyback initiative designed to stabilize price action and reinforce investor confidence.
Beyond token movements, Pump.fun’s recent SDK updates hint at a forthcoming token rewards system. This enhancement further solidifies Pump.fun’s dominant market share, currently about 91.8%, far outpacing competitors like LetsbonkFun.
DefiLlama shows an increase in the network’s liquidity base, as total value locked (TVL) now stands at $229.38 million.
In May 2024, a major breach occurred when former developer Jarett Dunn exploited internal vulnerabilities, stealing $2 million in $SOL and forcing Pump.fun offline for nine hours.
Dunn has since pleaded guilty, and while the legal resolution removes lingering uncertainty, the event showed systemic risks in meme coin platforms.
Despite this, Pump.fun has displayed strong resilience. The platform has generated over $791 million in revenue since the attack, a testament to its ability to recover and adapt.
This rebound has reassured both traders and investors, solidifying Pump.fun’s status as a resilient player in the meme token sector.
Adding to its growth momentum, Pump.fun released version 2.0 of its mobile app. The upgrade prioritizes speed and user experience, offering features such as real-time price alerts, a “Movers Feed” for trending tokens, and streamlined one-click trade execution.
These updates are designed to reduce friction for meme coin traders and enhance accessibility.
The question remains: Is the dip a strategic buying opportunity?
$PUMP Faces Breakdown After Textbook Head and Shoulders Pattern
$PUMP’s movement in the crypto market over the past week has followed a head and shoulders chart formation, leading to a clean neckline break that has now triggered its projected target to the downside.
After forming the left shoulder near $0.0034, the Pump.fun token rose to a high just above $0.0040 (the head) before it lost its momentum and established a right shoulder at $0.0038.
This symmetry, combined with declining relative strength and weakening volume on the subsequent push, foreshadowed the breakdown that followed.
The neckline, clearly drawn at $0.00340, eventually gave way during the August 18 session with a sharp red impulse that pushed the price toward $0.0025, the marked technical target from the breakdown height.
This cascade can also be seen in the volume footprint data (attached here).
Earlier sessions showed mixed commitment from both sides, but the aggressive sell-off began with a large red bar revealing a negative delta of -105.37M on volume of 948.02M, followed by a more intense drop during the next cluster, where over 1.8 billion contracts were exchanged and the delta hit -164.85M.
These back-to-back high-volume sell candles show clear dominance of market sellers, overwhelming any passive buying interest.
Surprisingly, the rebound attempts post-breakout have lacked conviction.
Even during the short-lived uptick after the breakdown, the volume was lopsided: nearly 1.91 billion contracts were exchanged. Nonetheless, the delta remained positive at only +192.43M, suggesting that despite high activity, buyers were not in full control. Subsequent candles also showed falling volume and smaller deltas, confirming fatigue.
In addition, the RSI remains below 40, not yet reaching oversold extremes but trending downward still.
Unless $PUMP finds strong demand around its current consolidation zone, the technical structure warns of a potential continuation to the downside.
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