Bitcoin, Ether, and XRP are all in the green after recovering from yesterday’s dip. Bitcoin is trading above $67k, while Ether is approaching the $2k psychological level once again.

PUMP, the native coin of the Pump.fun platform, has outperformed Bitcoin and Ether in the last 24 hours as it is up nearly 6%.

At press time, PUMP is trading at $0.0021 after successfully defending the $0.0019 support level on Thursday. 

The meme coin launch and trading platform’s native token is now in the green after three consecutive days in the red amid a deteriorating technical picture.

PUMP has responded to the surge in the broader crypto market by outperforming the leading cryptocurrencies. 

The rally comes as the notional value of all tokens in Pump.fun’s smart contracts averaged $172 million on Thursday, down from $178 million the previous day.

According to DeFiLlama, the Total Value Locked (TVL) has gradually declined from $335 million, a record set in  September. 

The decline indicates that investors continue to lose confidence in PUMP and the ecosystem, resulting in an extended period of sell-off for the meme coin.

Traders withdraw their assets from smart contracts to sell, reducing risk exposure.

Furthermore, the total revenue collected by Pump.fun, a leading memecoin launchpad and trading platform, has declined to $1.48 million as of Wednesday, from the $1.63 million recorded on Tuesday. 

The Friday data would determine if PUMP’s price switch bullish over the next few days or if the bears would remain in control. 

Finally, the derivatives market also suggests that fewer traders are participating in the market.

The PUMP futures Open Interest (OI) on Friday stands at $170 million, higher than the $163 million recorded on Thursday.

However, it is still way below the $1.23 billion recorded in September, underscoring the capitulation of retail investors.

The PUMP/USD pair remains bearish on the 4-hour chart despite overcoming the $0.0020 psychological level.

The sellers were unable to push PUMP’s price below the $0.0019 support level on Thursday, allowing buyers to temporarily regain control.

However, PUMP is still trading below the 50-day Exponential Moving Average (EMA) of $0.0024, and the 100-day EMA is positioned above it at $0.0027.

If the recovery continues, PUMP could rally past the weekly high of $0.002386 in the near term, paving the way for a breakout towards the 100-day EMA. 

The RSI of 48 is close to the neutral 50, indicating a fading bearish momentum. 

The MACD lines on the 4-hour chart are also converging, adding further bullish confluence to the pair.

However, if the recovery fails and the daily candle closes below the immediate resistance at $0.0020, PUMP could potentially accelerate its downtrend by 15% to $0.0017, a level tested as support on February 6.

The post PUMP holds $0.0019 support, eyes new weekly high appeared first on Invezz

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