Pump.fun is showing the first signs of a potential recovery after weeks of decline, with price action attempting to stabilize despite broader market resistance.
The shift in investor behavior is particularly notable, as recent on-chain data reveals early indications that sentiment may finally be turning in favor of the token.
Pump.fun Native Token Notes Inflows
The Chaikin Money Flow (CMF) highlights a key development: PUMP has registered its first inflows in more than three weeks. This shift suggests investors are accumulating at lower price levels after a prolonged period of outflows. Such accumulation phases often mark the initial stage of trend reversals, especially for highly speculative assets.
SponsoredInvestor participation is vital for PUMP, whose rallies are historically fueled by rapid bursts of retail demand. If these inflows continue building, they could increase liquidity and reduce selling pressure.
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The Squeeze Momentum Indicator reinforces this improving sentiment. The appearance of black dots confirms that PUMP is entering a squeeze phase, a period of tightening volatility that typically precedes a breakout. More importantly, the indicator shows momentum shifting from bearish to bullish, with rising green bars suggesting an emerging upward push.
If the squeeze releases while bullish momentum dominates, PUMP could benefit from a volatility expansion favoring upside movement. Historically, such setups have been precursors to strong short-term rallies.
PUMP Price Faces Resistance
PUMP is trading at $0.003209, sitting just below a key resistance at $0.003409. Clearing this level is essential to confirm a recovery and initiate a broader rally. Failure to break this barrier would risk renewed stagnation.
Given the improving CMF readings and momentum reversal, PUMP could climb above $0.003409 in the coming days. A successful breakout could target $0.003757, with an extension to $0.004015 if bullish pressure accelerates.
However, if the pattern fails or investors pull back prematurely, PUMP may lose support and fall to $0.002783. A drop below this level would invalidate the current bullish thesis and erase recent gains.
