PUMP breaks out of falling wedge after 37% correction

The PUMP token is showing a breakout from a falling wedge on the 4-hour chart, after the price previously fell 37% from the local top. Analyst DaanCrypto points to the breakout as a potentially interesting moment for traders who believe in a broader upward trend. At the time of publication, the price is around $0.003894.

In brief

• PUMP breaks out of a falling wedge after a 37% correction from the local top
• The analyst sees the current levels as important to watch within a possible upward trend
• Buybacks are still active and, according to DaanCrypto, the narrative around the coin remains intact

Breakout after 37% pullback

After a sharp rise, PUMP retraced 37% from the local peak. That pullback resulted in a consolidation pattern visible as a falling wedge on the chart. According to DaanCrypto, these are exactly the levels traders should watch if they expect the coin to be in a larger upward trend.

The chart shows that the price has broken through the upper side of the wedge and at the same time has reclaimed a green support area around $0.003700 to $0.003800. That is a technically positive signal, although caution remains warranted as long as confirmation is not forthcoming.

Narrative and buybacks still present

DaanCrypto notes that other coins have drawn attention away from PUMP in recent times. That is a normal phenomenon in crypto, where newer projects temporarily claim the spotlight. Nevertheless, he argues that sector leaders generally return after a while once the novelty of other projects fades.

He adds that the buybacks around PUMP are still active and that the underlying narrative has not changed. According to the analyst, for spot investors a coin like PUMP is easier to hold than for traders who work with futures or positions, because the volatility of this type of token can be considerable.