PUMP, the native token of Pump.fun, is up 16.8% in a week and 1.9% today alone.

The cryptocurrency's market sentiment seems to have turned bullish after hitting its all-time low at the beginning of the year.

At the time of writing, PUMP was trading at around $0.002194, with a trading volume of over $111 million, which is more than 70% higher than the previous day.

The surge in volume suggests conviction, even as concerns around supply and insider behaviour linger.

One of the biggest shocks to PUMP holders in recent weeks came from a large token sale by the project team.

Roughly 543 million PUMP tokens were sold from a team-linked wallet after being held for several months.

What unsettled the market was not just the size of the sale, but the fact that it was executed at a loss.

Selling at a loss is often interpreted as a sign of internal pressure rather than profit-taking.

In this case, it raised questions about treasury management and long-term confidence from insiders.

Shortly after the sale, PUMP struggled to hold higher price levels and briefly revisited the lower end of its recent range.

Despite that, the market did not collapse. Liquidity absorbed the sell-off faster than many expected.

This response hinted that speculative demand remains strong beneath the surface.

Another factor weighing on sentiment is the remaining team allocation.

A significant number of tokens are still held in known wallets, creating an overhang that traders will continue to monitor closely.

In addition to the market absorbing the sell-off pleasure, Pump.fun has introduced a structural change aimed at improving platform incentives.

The platform has launched a Cashback Coins system, allowing token creators to decide how trading fees will be distributed at launch.

Under this model, fees can either go to creators or be redirected back to traders and holders.

The latter option effectively turns fees into a form of on-chain cashback.

For traders, this changes the risk-reward equation. It also addresses long-standing criticism that creator fees drained liquidity too quickly.

By locking the fee model at launch, transparency is improved for all participants.

Traders now know exactly how a token is designed before committing capital.

This shift may also influence behaviour on the platform.

Projects that prioritise cashback often attract more sustained volume, and higher retention could lead to healthier price action over time.

Notably, the market reaction suggests that many participants view the change as a positive offset.

Volume has surged far beyond what price movement alone would imply, signalling aggressive positioning rather than passive holding.

If the upside pressure remains intact, a retest of the $0.00225 to $0.00230 zone becomes increasingly likely and a clean break above that area would confirm short-term bullish continuation.

On the downside, $0.00210 is emerging as an important support level.

A loss of that zone, especially on declining volume, would signal fading momentum.

Below that, the next support level that traders should watch is at $0.00200.

For now, the bias remains cautiously bullish, although the adoption of the Cashback Coins system will dictate whether this rebound turns into a trend.

The post PUMP rebounds as Cashback Coins launch offset token sell-off appeared first on Invezz

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