Pump.fun's $PUMP token rebounds 5.5% on whale buying and buyback program amid legal challenges and institutional interest.

Pump.fun’s $PUMP token has rebounded 5.5% to $0.003154, driven by whale accumulation and a buyback program aimed at stabilizing the asset after a 67% post-launch price drop [1]. Launched via an Initial Coin Offering (ICO) on July 12, 2025, the platform sold 150 billion out of a total 1 trillion tokens, signaling ambitions beyond being a mere memecoin incubator. To restore market confidence, Pump.fun has repurchased $31.3 million worth of $PUMP tokens using 25% of its protocol revenue and acquired Kolscan, a leading on-chain wallet tracking tool [1].

However, the project faces a major legal hurdle as a class-action lawsuit was filed by Burwick Law, alleging that Pump.fun functions as an “illegal casino” promoting memecoin speculation. The lawsuit, which seeks $5.5 billion in damages, could affect the platform’s regulatory standing and public perception [1]. Despite these challenges, institutional interest has shown resilience. Venture firm GSR recently purchased $4.6 million worth of PUMP, and open interest in PUMP derivatives climbed 6% to $743 million, with a positive funding rate indicating bullish sentiment [1].

On-chain price patterns also suggest a potential turning point. $PUMP broke out of a well-formed triple bottom on the 1H chart, reaching an intraday high near $0.00338 before retreating. The breakout occurred against a backdrop of rising volume, but recent delta data indicates a shift in momentum, with large red delta candles signaling aggressive selling after the high [1]. Traders are now watching $0.00304 as a key support level, with further support at $0.00295. A retest of $0.00320 with strong volume could signal renewed bullish control, though the current price action reflects a classic post-target consolidation phase [1].

With increasing competition from platforms like LetsBonk.fun, Pump.fun is doubling down on buybacks, acquisitions, and product innovation to maintain its position in the meme launchpad space [1]. The path forward remains uncertain, but the combination of whale activity, derivatives growth, and strategic acquisitions may provide the necessary support for a sustained rally.

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[1] Pump.fun ($PUMP) Rebounds 5.5% to $0.003154. Can It Push Further? (https://cryptonews.com/news/pump-fun-pump-rebounds-5-5-to-0-003154-can-it-push-further/)