PUMP Falls 8% Despite $19.6M Buyback Clings to $0.0029 Support

PUMP, the memecoin launchpad token, continued its downward spiral amid a contentious debate over its buyback strategy, with market participants fixating on whether the $0.0029 price level could reverse the asset’s fortunes. The token dipped 8% at the start of July 26 but managed to recover those losses by the week’s end, though its broader trend remains bearish. Since its launch on July 16, PUMP has faced relentless selling pressure from top holders, pushing its price below the Initial Coin Offering (ICO) level by July 22 [1]. Despite a $19.6 million buyback initiative—funded by fees previously liquidated via Kraken—the program has failed to stem the decline, with critics arguing it is insufficient for a $2.4 billion market cap asset [1]. Analyst Cirrus noted the buyback’s current market value has eroded to $7.6 million, intensifying skepticism about its efficacy [1].

Technical indicators hint at a potential short-term rebound. The 2-hour chart showed increased bullish momentum after a July 25 bounce to $0.0029, supported by elevated trading volume. The $0.00245 level has served as a critical support for 48 hours, while the Awesome Oscillator signaled weakening bearish momentum. A Chaikin Money Flow (CMF) reading above +0.05 also pointed to rising buying pressure in recent sessions [1]. However, the $0.0029–$0.003 range remains a pivotal resistance zone. A sustained breakout could unlock further gains, but the past ten days have predominantly favored sellers, urging caution among traders [1].

The buyback controversy has sparked heated community discourse. Reddit users characterized the strategy as both a “smart way” to inflate prices before personal dumps and an “extractive” approach due to the mismatch between funds deployed and the asset’s valuation [1]. Pump.fun’s shift from Kraken liquidity to token buybacks initially generated optimism but has since underscored the difficulty of aligning holder incentives in a volatile market [1].

Traders are now closely monitoring the $0.0029 level as a litmus test for PUMP’s short-term trajectory. A breakout would require robust volume and sustained buying pressure, yet macroeconomic conditions and broader crypto sentiment remain unpredictable. For now, PUMP’s path hinges on whether the buyback program can generate enough conviction to counter entrenched selling bias from top holders [1].

Source: [1] [PUMP slides further as buyback debate rages: Will $0.0029 turn things around?] [https://ambcrypto.com/pump-slides-further-as-buyback-debate-rages-will-0-0029-turn-things-around/]