Pump.fun has recorded a sharp incline in price, rallying strongly on the back of investor participation.
The altcoin recently set a new all-time high, showing the strength of bullish momentum. However, the market is also flashing mixed signals that could challenge this trajectory.
Pump.fun Gains Support
PUMP active addresses have surged notably over the past week, reaching 58,467 at the time of writing. This rise highlights growing participation among investors as more users engage with transactions, pointing to a potential continuation of bullish sentiment in the near term.
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The increase in activity reflects growing engagement and confidence in Pump.fun despite the volatility. Rising active addresses often correlate with healthier network usage, which could help the altcoin sustain higher levels of demand and price stability as long as momentum persists.
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PUMP Active Addresses. Source: Santiment
Despite the spike in active addresses, network growth is showing a sharp decline. The fall in new addresses signals fewer fresh participants entering the market, a bearish indicator that suggests PUMP may be losing traction in the broader crypto market.
This divergence between rising activity and weakening growth raises concerns about sustainability. While existing holders remain active, the lack of new adoption could limit capital inflows, potentially leaving PUMP exposed to sharper volatility and instability in the sessions ahead.
PUMP Network Growth. Source: Santiment
PUMP Price Could Bounce Back
PUMP is trading at $0.0078, holding above the support of $0.0074 after briefly dipping from a recent high. Earlier this week, the token formed a new ATH at $0.0090 before cooling slightly, highlighting the pressure at higher levels.
The token’s 65% weekly rise highlights strong momentum, but sustainability is uncertain. Mixed indicators from participation and network growth show that continued upward movement may face significant resistance unless new demand enters the market.
PUMP Price Analysis. Source: TradingView
If selling pressure increases, PUMP could fall below the $0.0074 support and test lower levels. A decline to $0.0062 remains a possibility, which would invalidate the bullish outlook and place investors on alert for deeper corrections.