PUMP, the native token of Solana-based token launchpad Pump.fun, has rallied more than 30% over the past seven days, driven by rising platform revenue, a new social trading product, and renewed memecoin activity. According to CoinGecko data as of August 10, PUMP traded at $0.002763, up 12.5% in 24 hours and 31.9% over the week. The token has also gained 39.5% over two weeks and 91.3% over the past month.
The latest catalyst came on August 7 when Pump.fun launched an updated social trading product. The update introduced “callout” tokens, which let users alert followers to tokens directly within the app, alongside zero-fee trading and cross-chain USDC support. Trading volume exceeded $113 million in the first 24 hours, according to CoinGecko, giving traders another reason to engage with the platform as activity was already recovering.
Revenue has become a critical metric for PUMP because Pump.fun now allocates half of its net earnings to buy back and burn the token. DeFiLlama data shows Pump.fun generated $33.73 million in revenue over the past 30 days, surpassing perpetual futures exchange Hyperliquid’s $32.73 million. This revenue feeds into a supply mechanism introduced in April, when Pump.fun burned approximately $370 million worth of repurchased PUMP, representing about 36% of circulating supply at the time. The platform also committed to using 50% of future net revenue for automatic open-market purchases and burns for one year.
The remaining half of revenue is earmarked for product development, hiring, marketing, and potential acquisitions, according to the April announcement. Higher revenue thus increases the amount allocated to programmed PUMP purchases, while the burns remove tokens from circulation, supporting price.
Memecoin trading has provided another tailwind. As of last week, memecoin prices across Pump.fun regained traction, and speculative trading continued over the weekend. Increased token creation and trading translate into more fee-generating activity across the platform’s products.
Technical analysis: strong but stretched
On the daily chart, PUMP was trading around $0.002765 on August 10, up from approximately $0.0012 in late June. The rally accelerated in the second half of July, with the token establishing higher lows before breaking above $0.0020 and extending toward $0.0028. Bollinger Bands show the move has stretched far from its 20-day average, which sits near $0.002153. The upper band is around $0.002700, and the lower band is approximately $0.001605. At $0.00276, PUMP has moved above the upper band, a sign of strong upside momentum but also of overextension.
The daily Supertrend remains bullish, with support near $0.002107, well below the current price. The first upside area is around $0.0028, where the latest daily candle has already traded. A sustained move through that zone could bring the psychological $0.0030 level into focus, followed by the late-January price area around $0.0031-$0.0032. Conversely, failure to hold the breakout could pull PUMP back toward the upper Bollinger Band near $0.00270, with the recent breakout area around $0.0024-$0.0025 as the next support, before the 20-day Bollinger midpoint near $0.00215 and Supertrend support around $0.00211.
The 4-hour chart supports the bullish trend but shows signs of overheating. Pump.fun’s Stochastic RSI stood at 88.91 and 91.20, both above the 80 overbought threshold, and the lines have started turning lower. If this continues while price struggles around $0.0028, a short-term consolidation or pullback is possible. Chaikin Money Flow, however, remains supportive at around 0.11, indicating buying pressure still outweighs selling pressure.
Upcoming token unlock
PUMP is heading into a major token unlock, with about 7.07 billion tokens scheduled to enter circulation on August 14. This fresh supply event could test the rally, as some of the newly unlocked tokens may reach exchanges, increasing selling pressure. The unlock comes at a time when the token is technically stretched, and traders will be watching to see if demand can absorb the additional supply.
For context, similar supply events have impacted other tokens. For instance, SpaceX's first lockup expiry saw insiders weigh selling, and recent market rallies have shown how quickly sentiment can shift. Investors should monitor whether the unlock leads to increased volatility or a sustained pullback.
In summary, PUMP’s rally is underpinned by strong fundamentals—rising revenue, new product features, and active memecoin trading. However, the upcoming unlock and overbought technical indicators suggest the path forward may be bumpy. Bulls need to hold above $0.0027 to keep the breakout intact, while a break above $0.0028 could open the door to $0.0030 and beyond. On the downside, support lies at $0.0026-$0.0027, then $0.0024-$0.0025, with the daily Bollinger midpoint and Supertrend around $0.00211-$0.00215 as the next major floor.
This article is for informational purposes only and does not constitute financial advice.
