Market struggle with PUMP: Bulls amass positions, bears liquidate assets
In the world of cryptocurrencies, Pump.fun (PUMP) finds itself at a significant juncture, with whales and profit takers shaping the market dynamics.
As of the 15th of September, whales have been actively accumulating PUMP tokens, with one whale purchasing a staggering 1 billion tokens worth $8.5 million from Bybit. Another whale, on Hyperliquid, acquired 426.43 million tokens for $3.2 million. Furthermore, large holders identified through Nansen analytics purchased an astounding 7.36 billion tokens on the same day, pushing the supply held by top holders to a new all-time high of 94% of the total tokens. These transactions mainly involved transfers to major exchanges like OKX and Binance, hinting at strategic moves in the market.
However, this accumulation by whales has not gone unchallenged. Profit takers have increased selling pressure, with sell volume surpassing buy volume. Historically, increased selling pressure has resulted in intense downward pressure, potentially leading to lower prices. As of writing, PUMP is trading at $0.0076, marking a 3.94% decline over the last 24 hours. This decline follows a rejection at $0.0089, reaching a low of $0.0074.
Coinalyze reports that on the 15th of September, PUMP recorded 5.3 billion in Sell Volume compared to 4.79 billion Buy Volume. This imbalance indicates the current struggle for market control between the bulls and the bears. If profit takers overwhelm the market and whale momentum fades, the altcoin downside will continue towards the $0.0077 support level.
However, if the whale accumulation continues, PUMP could reclaim $0.0089 and potentially breach the $0.01 resistance. If the recovery continues, it could potentially see a bullish trend. Our website's analysis shows that Pump retraced as profit takers jumped into the market, but also signaled recovery from the dip as whales bought it.
It's important to note that the exchange balance spiked by 3.32% to 625.72 billion, indicating intense selling pressure. The sources for the information about the whale purchases are Lookonchain and On-chain Lens.
In conclusion, PUMP is at a crossroads, with whale accumulation and profit taking shaping the market dynamics. The altcoin's future trajectory will depend on whether the whale momentum continues or if profit takers overwhelm the market.
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