Pump.fun's Buybacks Fuel Bull Run—But Shadows of Scandal Loom

Pump.fun’s native token, PUMP, has recently demonstrated a notable price rebound, drawing attention from both retail and institutional investors. After reaching a low of $0.00265 in late August 2025, the token has surged more than 65% to trade at $0.0044 by early September 2025. This upward movement has been attributed to aggressive buybacks initiated by the Pump.fun team and increased platform activity, including the introduction of creator fees and incentives for content creators and live streamers. These measures have reportedly boosted user engagement and trading volumes, with the platform reporting over $1 million in daily revenue as of late September.

Technical analysis suggests that PUMP is currently trading above key support levels, including $0.0075, which has long been considered a critical threshold for a sustained bullish trend. The Relative Strength Index (RSI) for PUMP stands at 79, indicating overbought conditions, a signal that some traders interpret as a potential correction ahead. However, the Average Directional Index (ADX) remains at 44, a reading that signifies a strong ongoing trend, suggesting that the broader market still views PUMP as a long-term bullish asset. Additionally, the token has entered the “golden cross” territory, where the 50-day moving average crossed above the 200-day moving average—a widely recognized bullish signal among traders.

Despite this positive momentum, sentiment on prediction markets such as Myriad remains bearish, with a majority of traders expecting a pullback to the $0.007–$0.0075 range before the next upward leg. This divergence between price performance and sentiment is attributed to several factors, including concerns over the platform's long-term sustainability and regulatory scrutiny. Reports from blockchain security firm CertiK have raised red flags regarding the past activities of one of Pump.fun’s co-founders, linking him to a 2017 rug-pull incident. Additionally, a study by Solidus Labs noted that 98.6% of tokens launched on Pump.fun exhibit patterns consistent with pump-and-dump schemes, further casting doubt on the platform's reputation.

Despite these challenges, Pump.fun has made strategic moves to bolster confidence in the PUMP token. The platform recently announced that PUMP would be listed on major exchanges, including Binance and Upbit. However, the listing failed to produce an immediate price rally, with trading volume surging by 73% in a single day but the token’s price declining instead of surging. Analysts speculate that this price drop may be due to profit-taking, as the token had already gained significant ground since its July launch. The Pump.fun team has also allocated $20 million toward buybacks in September alone, a move that is expected to further stabilize the token’s price and improve investor sentiment.

Looking ahead, several forecasts paint a wide range of potential outcomes for PUMP. By 2025, the token could trade as high as $0.0125 if market conditions remain bullish. In 2026, the average price is projected to reach $0.01, with some analysts suggesting a potential high of $0.0175. By 2030, optimistic projections range from $0.035 to $0.06, although most conservative estimates still place the price closer to the $0.02–$0.03 range. These forecasts are largely contingent on the platform’s ability to maintain user engagement, introduce innovative features, and navigate potential regulatory challenges.

PUMP’s price is also closely tied to broader market trends in the crypto space. For instance, the token has shown a beta of 1.5 relative to Bitcoin, meaning it amplifies movements in the broader market. As such, a breakout above $60,000 for Bitcoin could catalyze a new wave of interest in PUMP and other meme coins. Conversely, a bearish shift in the overall market could validate the bearish predictions currently dominating prediction platforms. Traders are advised to closely monitor key resistance levels, such as $0.009 and $0.0105, as well as support levels at $0.0075 and $0.0066, to gauge the token’s trajectory.

In conclusion, Pump.fun’s PUMP token has shown remarkable resilience in a volatile market, with its recent 4X rally defying bearish predictions. While technical indicators suggest a strong uptrend, sentiment remains mixed, with some analysts cautioning that the token’s recent momentum could be fragile. Investors are encouraged to approach PUMP with a strategic mindset, balancing optimism with caution as the platform and its native token continue to evolve.