Pump.fun's Buybacks Fuel Bull Run as PUMP Defies Market Downtrend

Pump.fun’s native token PUMP has surged nearly 90% in recent trading sessions despite ongoing bearish signals from technical indicators. The rally coincided with the platform’s continued execution of a token buyback program, which has repurchased nearly $72 million in PUMP tokens since initiation, reducing the total circulating supply by 5.36% [3]. The latest buyback week saw Pump.fun allocating 98.23% of its revenue toward repurchasing $12.19 million of tokens, marking a slight increase from the $10.6 million buyback in the prior week [4]. This aggressive reduction in supply has been a key driver in maintaining bullish sentiment for PUMP, particularly in an environment where broader crypto markets saw a 2.2% correction in total capitalization [5].

The token’s price action has been notably resilient. As of September 4, PUMP was trading at approximately $0.00432, having rebounded from strong support near $0.0027 in early September. This represents an 8% increase within a week and positions PUMP among the few altcoins showing positive momentum during the recent correction [3]. The price rally has been further supported by Pump.fun’s Project Ascend, an initiative launched on September 2 to improve the sustainability of token launches. The program includes Dynamic Fees V1, a tiered fee structure that reduces costs for creators as their projects scale, potentially increasing long-term token value for stakeholders [3].

The platform continues to dominate Solana’s memecoin ecosystem. Pump.fun controls 75% of the network’s meme coin activity, with 26,997 tokens minted through its platform in the last 24 hours alone. Daily trading volume reached $588 million, significantly outpacing rival platforms like LetsBONK.fun, which recorded $80 million in the same period [4]. This dominance has further reinforced PUMP’s market position and attracted attention from both retail and institutional investors.

Technical analysis of PUMP’s price movement reveals that it is currently trading within an ascending parallel channel pattern on the 4-hour chart. The token is approaching a breakout above $0.0046, a key resistance level. A golden cross, where the 50-day moving average crossed above the 200-day SMA, has also provided a classic bullish signal, supporting the case for continued upward momentum in the near term [5]. Analysts project a potential rally toward $0.0058, representing a 29% increase from current levels, though a pullback below $0.0042 could signal a reversal in trend [5].

The recent rally has also been driven by renewed interest from whale investors and public figures. Data from Nansen indicates that token holdings by whale wallets increased from 21.95 billion to 22.53 billion between August 29 and the time of the report. Public figure holdings also rose by 8%, from 442.8 million to 478.88 million, suggesting growing institutional confidence in the token’s trajectory [5]. This accumulation activity has been accompanied by heightened retail interest, driven by fear of missing out, further fueling price appreciation.

Source:

[1] Series 700 | Industrial Liquid Centrifugal Pump (https://www.mppumps.com/en/end-suction-pumps/industrial-liquid-pumps/series-700/)

[2] Series 300 | End Suction Centrifugal Pump (https://www.mppumps.com/en/end-suction-pumps/industrial-liquid-pumps/series-300/)

[3] Pump.fun Announces Another Buyback as PUMP Price Rises 8% (https://coingape.com/pump-fun-announces-another-buyback-as-pump-price-rises-8/)

[4] Pump.fun Purchased Over $12M in $PUMP Last Week Triggering Bullish Rebound (https://coinpedia.org/news/pump-fun-purchased-over-12m-in-pump-last-week-triggering-bullish-rebound/)

[5] PUMP price Eyes 29% Rally Backed by Token Buybacks and Fresh Demand (https://crypto.news/pump-price-eyes-29-rally-backed-by-token-buybacks-and-fresh-demand/)