Pump.fun price eyes higher support and 18% breakout as major meme coins consolidate
- Pump.fun increased over 36% in August, signaling risk-on sentiment after the sell-off from its record high of $0.0068.
- Meme coins collectively decline 3.6% over the last 24 hours as Dogecoin and Shiba Inu consolidate near key support levels.
- PUMP eyes support above the 100-period EMA as the MACD indicator maintains a buy signal on the 4-hour chart.
Pump.fun (PUMP), the token native to the meme coin launchpad, continues to defy negative market sentiment that characterises the broader crypto market on Wednesday. PUMP is up over 4% on the day, trading at around $0.0033 at the time of writing. This bullish outlook extends the uptrend that has seen PUMP accrue over 36% in gains since August 1. However, traders will focus on PUMP’s ability to hold above a higher support level to reinforce the bullish outlook in upcoming sessions.
PUMP upholds gains as major meme coins consolidate
PUMP sustained the uptick in price despite the sticky risk-off sentiment, driven by renewed United States (US) reciprocal tariffs and weak labor data. Dogecoin (DOGE) and Shiba Inu (SHIB), two of the largest meme coins are trading near key support levels of $0.20 and $0.00001160, respectively.
Dogecoin price offers subtle bullish signals based on the 4-hour chart below, evidenced by the Relative Strength Index (RSI) rising slightly above the midline. At the same time, the Moving Average Convergence Divergence (MACD) indicator upholds a buy signal triggered on Sunday when the blue line crossed and settled above the red signal line.
If bulls heed the call to increase exposure, the path of least resistance would remain upward. However, downside risk cannot be shrugged off considering DOGE still holds below key moving averages including the 50-period Exponential Moving Average (EMA), the 100-period EMA and the 200-period EMA.
DOGE/USDT & SHIB/USDT 4-hour chart
As for Shiba Inu, a recovery is underway, trading at around $0.00001236 from support at $0.00001160. Like DOGE above, SHIB sits below all three moving averages, including the 50-period EMA at $0.00001300, the 100-period EMA at $0.00001324 and the 200-period EMA at $1432 in the 4-hour time frame. These levels could limit Shiba Inu’s recovery in upcoming days if bulls tighten their grip.
Pump.fun bulls seek higher support
PUMP price holds above the 100-period EMA, providing support at $0.0033 on the 4-hour chart below. The MACD indicator maintains a buy signal since Monday with green histogram bars encouraging traders to maintain exposure anticipating the uptrend to steady toward the next key resistance at $0.40.
PUMP/USDT 4-hour chart
A SuperTrend buy signal offered on July 31 backs the bullish outlook, serving as dynamic support as long as it continues to trail PUMP price.
Still, with the RSI in the bullish region but showing weakness, traders should tread with caution. A reversal could ensue toward support provided by the 50-period EMA at $0.0030 if the RSI retreats, indicating a reduction in buying pressure.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Artigos Recomendados
