When the PUMP eyes DEX volume increases: check the prediction
Key receivers
PUMP is up 30% in the past seven days as the crypto market bounces back from December lows.
Pamp.fun's native token may continue to grow in DEX volumes in the near future.
Memecoin demand pushes PUMP above $0.02
PUMP, a native of Pamp.fun, is up 30% in the last seven days. The rally comes amid growing demand for memecoins.
The rally also saw Pump.fun's DEX volume hit $1.28 billion on Monday, up from $805 million on Sunday.
The token has been appreciated in recent days by meme coin-based business activity in many ways, including token purchases based on a source of income. DEX allocates nearly 100% of earnings to the buyback program, which is expected to build long-term value for PUMP.
Additionally, retail interest in PUMP has increased in recent days. According to CoinGlass, PUMP futures open interest (OI) averaged $231 million on Tuesday, up from roughly $207 million on Monday and $150 million last Thursday. This suggests that traders are confident that PUMP has the potential to sustain a short-term recovery.
PUMP eyes recovery above $0.0032
The 4-hour chart of PUMP/USD is very bright and active as the token has gained 30% in value in the last seven days. At press time, PUMP is trading above $0.0023 and could go higher in the near future.
The moving average converging divergence (MACD) indicator on the 4-hour chart supports a bullish bias. The RSI reads 61 and is heading towards the overbought territory if the bullish trend continues.
If the bulls are under control, PUMP could rally towards the 50-day Exponential Moving Average (EMA) at $0.002992 to confirm its recovery potential and encourage traders to increase exposure. The next highest resistance level stands at $0.0032 from the 100-day EMA.
However, if the bears regain control, PUMP may undergo a minor correction at the $0.0020 psychological level.
