The broader cryptocurrency market is showing steady upside performance today, with both Bitcoin (BTC) and Ethereum (ETH) trading in green with modest gains. This positive sentiment has allowed several altcoins to move higher — including Pump.fun (PUMP).
PUMP is currently up around 4% today, and more importantly, its latest technical setup suggests that the token could be preparing for another strong leg upward.
Retest of Inverse Head and Shoulders Breakout
On the 4-hour chart, PUMP has successfully broken out of an Inverse Head and Shoulders formation — a well-known bullish reversal pattern that often signals the end of a downtrend and the start of a new uptrend.
As shown on the chart, the token formed the classic three-part structure with a left shoulder, head, and right shoulder before breaking above the neckline resistance at $0.00403. This breakout pushed PUMP to a local high of $0.0043, followed by a natural pullback that retested the neckline zone near $0.0040.
The retest has so far held successfully, as buyers stepped in around the neckline, supported by the 100-period moving average (MA). This rebound has brought PUMP back up to around $0.004323, confirming the neckline as new support.
What’s Next for PUMP?
With the inverse head and shoulders breakout holding steady, PUMP could be setting up for another upward move. If bulls continue to defend the 100 MA support and buying volume picks up, the token could aim for its next technical target near $0.00538 — which represents about 25% potential upside from current levels.
However, traders should watch closely for any drop below the 100 MA, as that could invalidate the bullish setup on the lower time frame.
Overall, PUMP’s recent price action suggests a shift in momentum, backed by a strong technical base and improving market sentiment.