PUMP price rebounds 27% as buybacks boost volume to $666 million

PUMP experienced a sharp intraday price rebound of 27% on July 31, climbing from $0.0025 to a high of $0.003267 before settling at $0.002929, according to CoinMarketCap data. The surge coincided with Pump.fun allocating nearly 98% of its PumpFun/PumpSwap fees into market buybacks, effectively reducing the circulating supply. This aggressive buyback strategy drove the token’s trading volume to $666 million, a 22% rise compared to the previous session [1].

The rebound followed a turbulent period after PUMP’s launch. The token had previously fallen below its $0.004 initial coin offering (ICO) price, as early investors offloaded large quantities of tokens. Blockchain records showed two wallets alone dumping 29.5 billion tokens worth over $160 million. BitMEX analysts noted that 60% of presale participants liquidated or transferred their holdings shortly after launch, highlighting the token’s early instability [1].

Despite these challenges, the buyback-driven rally has shifted market sentiment to a degree. Notably, prominent crypto trader Machi Big Brother increased his long position in PUMP, acquiring 4.2 billion tokens at 5x leverage. This action suggests some confidence in the platform’s strategy to reduce supply and potentially stabilize the token. However, the long-term viability of Pump.fun’s approach remains uncertain. Sustaining such aggressive buybacks indefinitely would be necessary to counter the remaining large whale positions and the 37% of presale investors who are still sitting on unrealized losses [1].

From a technical perspective, PUMP may test the $0.004 resistance level if the current momentum holds. However, the larger challenge lies in whether a token designed for rapid, speculative growth can evolve into a more stable and sustainable asset. For now, market funding rates remain neutral, indicating a lack of strong conviction from either longs or shorts. The true test will come when buyback activity slows, revealing whether this rally is a strategic reset or merely an attempt to provide exit liquidity [1].

Source: [1] PUMP price rebounds as quiet buybacks fuel a $666m volume surge (https://crypto.news/pump-price-rebounds-as-quiet-buybacks-fuel-a-666m-volume-surge/)