The cryptocurrency market is currently undergoing a correction following the release of the U.S. Producer Price Index data, leading to price declines for many assets, including Pump Fun (PUMP).
Market Correction
The cryptocurrency market is experiencing a downturn after the release of the U.S. Producer Price Index (PPI), which created waves of selling. Ethereum (ETH) has dropped from its recent peak above $4,700 to around $4,600, with PUMP down 6% on the day.
Cup and Handle Pattern for PUMP
On the 4-hour chart, PUMP has formed a textbook Cup and Handle pattern—a well-known bullish continuation formation that often precedes strong upside surges. After carving out the rounded 'cup' and shorter 'handle,' PUMP broke above its neckline resistance near $0.003645, fueling a sharp rally toward $0.004173.
PUMP's Prospects and Possible Scenarios
If the neckline retest holds and buyers regain control, PUMP could be poised for a push back toward $0.004173, with an extended target near $0.005035. However, a decisive break below $0.003480 could invalidate the pattern.
Currently, PUMP is at a critical level where monitoring buyer actions is essential. This may indicate a potential recovery for the cryptocurrency after the current pullback.
