PUMP Price Slams Into Resistance After a 20% Rally — Why That May Be Bullish
Despite a recent 20% rally, PUMP price hitting resistance is likely bullish consolidation based on pattern validity and momentum indicators.Summary
The PUMP token price recently surged over 20% in 24 hours, continuing a 60% monthly gain, but this occurred within a broader three-month downtrend, leading to a test of resistance.
Technically, the initial breakout from a large cup-and-handle pattern remains valid, projecting a target near $0.0045, and a smaller, second cup structure is forming with an upward-sloping neckline, suggesting improving demand. The current pause at resistance near $0.0031 is interpreted as necessary consolidation rather than a reversal, supported by momentum indicators like the RSI potentially showing hidden bullish signals.
On-chain data also supports consolidation: whale holders took profits after the rally, and exchange flows shifted to net inflows, indicating short-term selling pressure. Key support levels are $0.0028 to $0.0026, while breaking and holding above $0.0032 would confirm the bullish continuation toward the $0.0045 target, which is aligned by both chart patterns.
(Source：BeInCrypto)