The cryptocurrency market is experiencing a strong performance today, with Ethereum (ETH) climbing more than 7 percent. This positive market sentiment is contributing to the upward momentum of several altcoins, including Pump.fun (PUMP).
Pump.fun (PUMP) has seen an impressive 17 percent increase in value over the last 24 hours. More significantly, its technical chart is beginning to indicate a potential bullish reversal, with a pattern emerging that could signal a breakout in the upcoming trading sessions.
Descending Channel in Play
On the daily chart, PUMP has been trading within a classic descending channel, defined by two parallel downward-sloping trendlines. This pattern has characterized the token's corrective phase over several weeks.
During the recent downturn, PUMP retested the lower boundary of this channel, which is situated near the $0.0032 mark. This level has consistently acted as a robust support area, and once again, buyers have shown strong interest, leading to an aggressive bounce. The token has since recovered to approximately $0.00448, bringing it closer to the channel's upper boundary.
The current price action, consolidating near the top of this structure, suggests that momentum is building and increasing pressure for a potential breakout.
Future Outlook for PUMP
A confirmed breakout would occur if buyers successfully push PUMP above the channel's upper trendline and reclaim the 50-day moving average, currently positioned at $0.004829. Should this breakout materialize, the next significant technical target is projected to be around $0.01032, indicating a potential upside of approximately 130 percent from its current trading levels.
Conversely, if PUMP fails to break through the upper boundary of the descending channel, it is likely to continue consolidating within the existing pattern for a longer period. In such a scenario, the $0.0034 zone would remain a critical support area to monitor.
As of now, PUMP's technical structure appears constructive. The descending channel remains intact, support levels are being defended by buyers, and a move above the 50-day moving average could serve as the signal for a broader bullish continuation.