3 Reasons Why PUMP Price Rally Could Extend Despite Whales Offloading $8 Million

PUMP has dominated chatter on Solana’s meme coin scene, gaining greater than 120% in a month. But after whales offloaded $8.26 million in tokens previously 24 hours, the PUMP worth slipped about 5%.

Selling strain is actual, but charts and flows counsel the PUMP rally’s construction remains to be intact.

Selling Pressure Mounts, however Smart Money and Retail Flows Hold the Line

The final 24 hours noticed whales lower their holdings by 5.58%, leaving 17.81 billion tokens. At present costs of $0.00775, that’s roughly $8.26 million value bought.

Exchange balances additionally rose by about 5.88 billion to 625.05 billion, suggesting retail promoting, or slightly, revenue reserving. Even public determine wallets joined in, decreasing their stash by 8.51% to 480.96 million.

In summation, PUMP just lately skilled promoting strain of virtually $55 million as key cohorts offloaded.

On paper, this explains the 5% dip. But two alerts counsel the promoting spree could not derail the larger rally.

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First, sensible cash flows haven’t rolled over. Wallets tagged as sharp merchants are nonetheless positioned increased than earlier in September, exhibiting that skilled gamers are usually not exiting. The latest flatlining in sensible cash seems much like late August, when PUMP went sideways earlier than resuming its climb.

Second, retail demand remains to be there. The Money Flow Index (MFI), which measures shopping for strain by mixing worth and quantity, has made a better high at 97.5. That’s above its September 8 peak, which preceded a 65% rally.

Rising MFI at the same time as whales promote alerts that dip patrons are stepping in.

Together, this mixture of whale offloading and retail absorption units the stage for a pullback slightly than a collapse.

Channel Pattern and Bull-Bear Signals Show PUMP Price Path Still Bullish

To gauge near-term power, the 4-hour chart provides the clearest view of PUMP’s short-term ranges. It captures intraday shifts that the day by day chart could easy over, making it splendid for recognizing pullbacks.

Here, the bull-bear energy indicator — which measures whether or not patrons or sellers are stronger by evaluating costs to a median line — nonetheless exhibits bulls in management.

Even as PUMP has moved sideways and dipped barely, patrons proceed to defend the $0.00771 degree, near the place it trades now. This protection is crucial, because it alerts that bulls are usually not giving up floor simply.

At the identical time, the PUMP price action stays inside an ascending channel, which occurs to be the third bullish motive after the SMI and MFI. If promoting deepens, helps sit at $0.00660 and $0.00621. Even a pullback to these ranges wouldn’t break the channel, holding the broader rally alive. Only a confirmed shut under $0.00575 would flip the bias from bullish to bearish.

However, if the PUMP price reclaims $0.00876 (near its all-time high) with a whole candle shut, it might imply that the pullback has run its course.

And it might then prime the value to achieve newer highs by serving to break the bullish channel sample, with the subsequent set of targets sitting at $0.00940 and $0.009924.

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