Market Context and PUMP's Performance
The broader cryptocurrency market is exhibiting an encouraging tone today, with Bitcoin (BTC) and Ethereum (ETH) both trading over 1% higher. This positive sentiment sets the stage for potential upside in several altcoins, including Pump Fun (PUMP).
PUMP is currently showing modest intraday gains, and the latest chart setup suggests there may be more upside ahead. A developing harmonic pattern hints that a short-term bullish continuation could be underway.
Harmonic Pattern Analysis for PUMP
On the 4-hour chart, PUMP appears to be forming a Bearish Butterfly harmonic pattern. Despite its name, this pattern often features a bullish rally during its final CD leg before reaching the completion zone.
The pattern initiated from Point X near $0.004566. This was followed by a sharp correction to Point A, then a rebound to Point B, and finally a dip to Point C around $0.003414. After establishing this low, PUMP has shown renewed strength and is currently trading around $0.003755, reflecting early signs of buying interest returning to the market.
Crucially, the token is hovering just below its 100-hour moving average (MA) at $0.004343, which acts as a key short-term resistance. A decisive breakout and close above this level could flip it into support, thereby confirming the bullish continuation phase of the Butterfly pattern.
Future Outlook for PUMP
If bulls can sustain momentum above the 100-hour MA, the pattern projects a potential rally toward the Potential Reversal Zone (PRZ). This zone is located between $0.004935 and $0.005404.
These levels align with the 1.272 and 1.618 Fibonacci extensions. Both of these Fibonacci levels have historically marked completion zones for Butterfly patterns before a reversal phase begins.
However, failure to defend the C-level support at $0.003414 could invalidate the pattern. This scenario would open the door for a short-term pullback toward the $0.0031–$0.0030 range before any subsequent rebound attempt.