Pumpfun (PUMP) price prediction: bullish structure forming, a pullback to $0.003 could trigger a 20% Rebound.

The Pumpfun platform Token PUMP experienced a cliff-like drop after reaching a high of $0.00689 on July 15, plummeting 66.58% to $0.0023 within 10 days. After a week of consolidation, PUMP strongly broke through the key resistance of $0.003 on July 31, forming a bullish structure on the 2-hour chart. This article analyzes the short-term technical indicators and entry opportunities for PUMP in conjunction with the market trends of Bitcoin and Ethereum, predicting potential target levels.

Price Trend: Breakthrough Signal After Deep Fall

• Big dump stage: From July 15 to 25, PUMP fell straight from a high of $0.00689 to $0.0023, with a ten-day retracement of 66.58%, and the market value evaporated significantly.
• Consolidation and accumulation: In the following week (July 25-30), it fluctuated within the range of 0.00245-0.003 USD, with a shrinking trading volume indicating bullish accumulation.
• Key Breakthrough: On July 31, a strong rally of 30% occurred, breaking through the upper range of 0.003 USD, with the technical aspect completing a downtrend reversal.

Technical Structure: Bullish Pattern Established on 2-Hour Chart

(Source: TradingView)

• Bullish structure confirmation: After breaking the previous high of $0.003, the PUMP 2-hour candlestick forms a higher high + higher low classic bullish structure.
• Pullback buying point emerging: At the time of writing, the price is currently retracing to the breakout support zone of 0.0029-0.003 USD, creating a potential opportunity to get on board with long positions (Note: This strategy is purely driven by technical analysis, independent of the project's fundamentals).
• Technical indicator resonance bullish:
  • On-Balance Volume Indicator (OBV): A breakout accompanied by a new high in OBV confirms the authenticity of buy orders.
  • Relative Strength Index (RSI): Remains firmly in the strong zone above 60, far from the overbought threshold.

Target Area: Focus on Two Levels of Technical Resistance

1. First Target: 0.0036 USD (Order flow fair value gap FVG area)
2. Second Target: $0.00378 (previous swing high resistance level) If the breakout is valid, the potential short-term rise is nearly 20%, with the target range corresponding to $0.0036-$0.00378.

Market Linkage: BTC/ETH rebound provides support

• Bitcoin Benchmark: BTC rebounded after testing the support at 115,800 USD on July 30, currently remaining above the key level of 116,700 USD, with a short-term trend turning bullish.
• Ethereum Collaboration: ETH synchronized rebound of 1.47%, maintaining the local support of $3,700, with leading tokens positively reflecting the sentiment in the Meme sector. The technical recovery of mainstream coins provides a rebound window for high-risk assets such as PUMP.

Risk Warning: High Volatility Attribute Not Changed

• Sustainability of Volume in Doubt: After the breakout with increased volume, it is necessary to observe the follow-up buying strength to guard against false breakout traps.
• Meme sector rotation is rapid: Pumpfun, as a Meme Token launch platform, has its ecological token PUMP susceptible to sudden changes in market risk appetite.
• Resistance from Above: There is a historical dense trading area in the range of 0.004-0.006 dollars, and the rebound process may encounter selling pressure.

Conclusion: The validity of the breakthrough needs to be confirmed, and strict risk control comes first The current PUMP technical indicators present short-term trading opportunities, but three key points must be noted:

Operating Strategy:

1. Get on board timing: Keep a close eye on the 0.0029-0.003 USD pullback area; effective stabilization may allow for light long positions.
2. Stop Loss Setting: A decisive stop loss is required if it falls below $0.0028 (breaking the K-line low).
3. Take profit in batches: First target reduce position at 0.0036 USD, clear position at 0.00378 USD.

Trend Continuation Conditions:

• The daily closing must stand firm at the 0.0032 USD Fibonacci 23.6% retracement level
• Bitcoin must maintain above $116,000 without breaking down.
• On-chain data shows that the launch enthusiasm for the new Token on the Pumpfun platform is rising.

Whether PUMP can achieve a 20% rebound depends on the intensity of the pullback and the continuity of fund rotation in the Meme sector. Traders should adhere to short-term discipline and avoid excessive risk exposure under unclear fundamentals.