The cryptocurrency market is showing signs of recovery following a recent downturn, with memecoin Pump.fun (PUMP) making a significant resurgence.
First Look at PUMP
After a challenging period, PUMP has returned to the green, marking a strong 16% gain over the past 24 hours. This has sparked interest in the asset, which may now be on the verge of a more sustained increase.
Chart and Pattern Analysis
On the 2-hour chart, PUMP has been consolidating within a falling wedge pattern, a formation that often signals the end of a downtrend. Recently, the asset found support at the lower boundary of the wedge around $0.0023 and broke above the resistance level at $0.0028 today.
Future Prospects for PUMP
If the current breakout holds, a move above the 50-period moving average at $0.003059 could pave the way for a push towards the next resistance level near $0.0040, representing a 38% increase from the current price. However, traders should be mindful that a retest of the breakout zone may occur before PUMP begins its next significant leg higher.
Current trends in the cryptocurrency market and the resurgence of PUMP provide optimism, yet investors should monitor developments closely.
