news 
PUMP token blasts past $2 billion valuation – Is a short-term setback next for its price?
In the latest development in the cryptocurrency space, Pump.fun’s native token, PUMP, has blasted past the massive $2 billion valuation mark. This incredible feat is an indication of the immense popularity and demand surrounding this newly launched token.
The PUMP token has been making waves since it was sold out in 12 minutes during its ICO, which raised a staggering $600 million, combined with the private sale, amounting to a whopping $1.32 billion. This rapid ascent into the top 65 by market capitalization on CoinMarketCap should have many investors wondering: is this token’s price destined for an imminent short-term setback?
It is essential to analyze the recent price action of PUMP to determine if there are any warning signs that could indicate a temporary decline in its value. Upon examining the data, it becomes apparent that the token has managed to flip the short-term resistance at $0.006 from resistance to support. This suggests that buyers are firmly in control and are driving the price higher.
The Open Interest behind PUMP increased by an impressive 8.85% over the past 24 hours, indicating strong bullish conviction from market participants. Furthermore, Coinalyze data reveals a staggering aggregated OI of $937.7 million at the time of writing – a substantial figure for a newly launched token like PUMP.
The short-term chart also suggests a firmly bullish outlook, as the 30-minute chart highlights the breach and subsequent retest of the previously identified resistance zone, leading to another impressive 13% rally within four hours. However, it is crucial to take into account the RSI signal, which signals a bearish divergence. This phenomenon occurred when the PUMP token’s price continued to rise while its relative strength index (RSI) failed to follow suit.
As a result of this divergence, PUMP retraced by 2.7% within an hour after the divergence was observed, potentially building up a base at $0.0065 before making its next impulsive move higher.
Source: ambcrypto.com
