Is This a Trap or the Start of a Trend Reversal? PUMP Faces a Critical Decision Zone
Most traders are still calling this move “just another dead-cat bounce.” But the chart tells a more uncomfortable story: PUMP may be transitioning from distribution to early accumulation, right when sentiment is at its weakest.
On the daily timeframe, PUMP has been trading under a long-term descending trendline since its peak, consistently capped by lower highs. However, price has now broken above the short-term consolidation range and is pressing directly into the trendline resistance, while holding above key moving averages.
Notably, price is stabilizing above the EMA 50 and EMA 100, while the EMA 200 (around 0.0026) continues to act as a strong long-term demand zone. This structure suggests sellers are losing momentum rather than aggressively defending lower levels.
Momentum indicators support this shift. RSI is hovering around 60, making higher lows and approaching bullish territory, signaling strengthening buying pressure without being overbought. Meanwhile, MACD has crossed above the signal line, with histogram turning positive — a classic early reversal signal on higher timeframes.
From a market structure perspective, as long as PUMP holds above the 0.0029–0.0030 support zone, the bias remains cautiously bullish. A confirmed breakout above the descending trendline could unlock a broader trend reversal rather than a short-term relief rally.
Long-Term Buy Setup (Risk-Managed)
Buy Entry: 0.00295
Stop Loss: 0.00260 (below EMA 200 & structure support)
Take Profit 1: 0.00450
Take Profit 2: 0.00750 (previous major supply zone)
This setup offers a high R:R profile, suitable for swing to long-term positioning, not short-term speculation.
If this is truly “just a bounce,” price will lose 0.0026 quickly. But if it holds, bears may be underestimating what comes next.
This analysis is for informational purposes only and does not constitute investment advice. Always do your own research.
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