PUMP has taken the lead in Solana’s meme coin discussions, experiencing a surge of over 120% within a month. However, the price has dropped around 5% following the offloading of $8.26 million in tokens by whales in the past 24 hours.
The selling pressure is evident, yet charts and flows indicate that the structure of the PUMP rally remains intact.
Selling Pressure Rises, but Smart Money and Retail Flows Remain Strong
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Over the last day, whales reduced their holdings by 5.58%, leaving a total of 17.81 billion tokens. At the current price of $0.00775, that equates to about $8.26 million sold.
Balances on exchanges also climbed by approximately 5.88 billion to 625.05 billion, indicating retail selling, or profit taking. Public figure wallets have also decreased their holdings by 8.51%, amounting to 480.96 million.
In summary, PUMP faced selling pressure nearly reaching $55 million from key market players.
This might explain the 5% dip. However, two signals indicate that the selling frenzy may not hinder the larger rally.
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First, smart money flows have remained steady. Wallets identified as experienced traders are still positioned higher than they were in early September, signifying that informed players are not leaving the market. The recent stabilization in smart money resembles the situation in late August when PUMP lingered before climbing again.
Second, retail interest remains strong. The Money Flow Index (MFI), which assesses buying pressure by merging price and volume, recently hit a higher high of 97.5, surpassing its peak from September 8, which preceded a 65% rally.
An increasing MFI amidst whale sell-offs suggests that dip buyers are entering the market.
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This combination of whale selling and retail absorption sets the scene for a potential pullback rather than a significant collapse.
Channel Patterns and Bull-Bear Signals Indicate a Bullish Path for PUMP Price
To assess near-term strength, the 4-hour chart offers a clear perspective on PUMP’s short-term levels. It tracks intraday movements that may be smoothed over in the daily chart, making it effective for identifying pullbacks.
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In this context, the bull-bear power indicator — which compares prices to an average line to determine buyer and seller strength — continues to show that bulls hold the upper hand.
Even amid sideways movement and a slight dip, buyers are defending the $0.00771 level, which is close to the current trading price. This defense is vital as it signifies that bulls are not relinquishing ground easily.
Additionally, PUMP’s price action remains within an ascending channel, which serves as the third bullish indicator alongside the SMI and MFI. Should selling intensify, support levels at $0.00660 and $0.00621 are in place. A pullback to these levels would not break the channel, preserving the broader rally. Only a confirmed close below $0.00575 would shift the sentiment from bullish to bearish.
Conversely, if the PUMP price reclaims $0.00876 (near its all-time high) with a complete candle close, it would signify that the pullback has concluded.
This would set the stage for potential new highs, breaking the bullish channel pattern, with subsequent targets positioned at $0.00940 and $0.009924.
