PUMP token blasts past $2 billion valuation – Is a short-term setback next for its price?
Key Takeaways
The Pump.enjoyable ICO noticed the PUMP token attain staggering valuations. Nevertheless, as the remainder of the crypto market climbs larger, PUMP seemed set to rally too. It managed to flip the short-term resistance at $0.006 from resistance to assist.
Pump.enjoyable [PUMP] token, at press time, was already at a $2.33 billion market cap. With solely 35.4% of the entire provide in circulation, its totally diluted worth could also be a a lot greater $6.58 billion. The excessive valuation noticed the token enter the highest 65 by market capitalization on CoinMarketCap, and it was ranked forty fourth on the time of writing.
The Pump.enjoyable ICO for the PUMP token was offered out in 12 minutes on Saturday, 12 July. The providing raised $600 million, and mixed with the non-public sale, may convey the proceeds to $1.32 billion.
Bullish conviction reigns supreme for PUMP… a minimum of for now
The Open Interest behind PUMP elevated by 8.85% over the previous 24 hours. This may be a sign of bullish conviction within the brief time period. In truth, Coinalyze knowledge additional revealed an aggregated OI of $937.7 million on the time of writing – A whopping determine for a newly launched token.
Supply: PUMP/USDT on TradingView
The 30-minute chart highlighted a firmly bullish outlook. The $0.006 area, marked in purple, was a short-term resistance within the final 24 hours. The patrons drove the token past this provide zone. The breach of this resistance was adopted by its retest as assist, earlier than it rallied by one other 13% in simply 4 hours.
Nevertheless, the RSI signaled a bearish divergence. It made a decrease excessive whereas PUMP’s value made the next excessive, closing a 30-minute candle at $0.0068.
Inside an hour of the event of this divergence, Pump.enjoyable token retraced by 2.7% on the charts. It may very well be increase a base on the $0.0065 space earlier than making its subsequent impulse transfer larger. Lastly, the uptrend on the OBV pointed in the direction of purchaser dominance and regular, sustained shopping for stress.
General, the short-term value motion seemed promising for PUMP. The long-term results of the memecoin launch platform will likely be debated by crypto members for some time.
Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
