Is PUMP price headed for more gains after its 10% rally?

PUMP price has climbed nearly 10% over the past 24 hours as traders have responded to Pump.fun's new BOOST mechanism, with technical indicators now pointing to the next resistance zone around $0.00215–$0.00224.

According to CoinGecko data, Pump.fun's native token traded around $0.0020 on Monday after gaining about 9.2% over the previous 24 hours. 

The rally followed a sharp breakout from the $0.00185 area before the token settled into a higher trading range, while daily trading volume accelerated alongside the move.

Behind the rally is a new platform feature introduced by Pump.fun that changes how liquidity is handled after tokens complete their bonding curves.

Pump.fun's BOOST feature triggers fresh buying

Pump.fun recently announced BOOST mode, a mechanism designed to address what the platform described as nearly $100 million (approx. Rs 28 billion) in liquidity becoming permanently locked in liquidity pools each year after token migrations.

Instead of placing 20% of settlement funds into inactive liquidity pool reserves, the new system automatically directs 17.6 SOL, or about $2,516 for USDC pairs, into a five-minute time-weighted average price market purchase immediately after a token migrates. 

Every token acquired through the process is then permanently burned.

By replacing dormant liquidity with automatic market purchases and token burns, the update immediately created buying pressure while reducing circulating supply, helping lift sentiment around the PUMP token.

Trading activity strengthened further after Cryptonary featured Pump.fun in one of its official recommendations. 

The endorsement drew fresh attention from traders, contributing to a roughly 2.5-fold jump in 24-hour trading volume as buying interest accelerated.

Outside platform-specific developments, improving sentiment across digital assets also added support. 

Bitcoin reclaimed the $65,000 level after concerns over geopolitical tensions eased, encouraging traders to rotate back into higher-risk crypto assets, including memecoin-related ecosystems such as Pump.fun.

PUMP price analysis: Can the rally continue?

On the daily chart, PUMP has regained momentum after recovering from its late-June lows and is now trading above its 20-day, 50-day and 100-day exponential moving averages.

PUMP/USDT 1-day price chart. Source: TradingView.

Holding above all three moving averages indicates buyers have regained control of the short-term trend after weeks of weakness.

The token has also reclaimed several key Fibonacci retracement levels, including the 0.786 retracement near $0.00179, before advancing toward the 1.0 extension around $0.00191. 

After breaking above that level, the price has continued consolidating near $0.0020 rather than giving back most of its gains, a sign that buyers continue absorbing selling pressure.

The next technical hurdle lies near the 200-day EMA at $0.00215, which closely aligns with the 1.618 Fibonacci extension at $0.00224.

A decisive move above that resistance zone could open the door for another leg higher, although confirmation would require sustained buying volume.

On the downside, the former breakout area around $0.00179 has become the first support to watch. 

Below that, the 0.618 Fibonacci retracement near $0.00170 and the 50-day EMA around $0.00167 could provide additional support if profit-taking emerges.

The 4-hour chart paints a similar picture but offers more detail about the rally's momentum.

See below:

PUMP/USDT 4-hour price chart. Source: TradingView.

Trading volume expanded sharply as PUMP broke above resistance, confirming that the advance was supported by fresh participation rather than thin liquidity. 

After the initial surge, the token pulled back modestly before forming a higher base around $0.0020, where buyers stepped back in.

Momentum indicators also remain constructive. The 4-hour Relative Strength Index has climbed to about 65, placing it below the traditional overbought threshold of 70 while continuing to trend higher. 

The RSI has also crossed above its signal average, indicating bullish momentum remains intact.

Meanwhile, the Cumulative Volume Delta recorded a significant positive spike during the breakout, showing that aggressive buyers dominated order flow during the move. 

Although the indicator later moderated as the rally cooled, buyers have continued defending higher price levels instead of allowing the token to return to its previous trading range.

Whether PUMP can extend the advance, however, may depend on its ability to clear the $0.00215 to $0.00224 resistance area while maintaining the elevated trading volume that accompanied the BOOST announcement and the recent pickup in market sentiment.