After hitting a new low two days ago, Pump.fun (PUMP) has jumped nearly 30% to a key resistance level. As the token attempts to reclaim this area, an analyst suggested that the bottom may be in, and a recovery rally is underway.<\/p>\n
On Thursday, Pump.fun retested a crucial level after its recent struggles. The token has been making the headlines for its constant bleeding, hitting new all-time lows (ATLs) over the past week.<\/p>\n
Notably, PUMP launched on July 14 and surged 70% from its Initial Coin Offering (ICO) price of $0.0040, hitting its all-time high (ATH) of $0.0068 two days later. However, selling pressure<\/a> from large-scale investors and disappointing updates about the highly anticipated token airdrop halted the fun.<\/p>\n Just a week after its launch, Pump.fun\u2019s token fell below its ICO price and continued to nosedive below the $0.0030 mark over the following days. The cryptocurrency hit an ATL of $0.0028 last Thursday after the platform\u2019s co-founder, Alon Cohen, stated<\/a> that the PUMP airdrop would not be taking place soon.<\/p>\n Since then, the token has dropped even further, hitting a new low of $0.0022 on July 29, nearly a 70% drop from the ATH. Nonetheless, PUMP has also been ranging between the $0.0024-$0.0029 area during the past week, attempting to break above this range three times.<\/p>\n Over the past two days, Pump.fun has surged nearly 30% from the lows, breaking above the $0.0030 resistance for the first time in a week. The token surged 12% on Thursday to hit a weekly high of $0.0032 before retracing toward the $0.0027-$0.0029 area.<\/p>\n Crypto analyst Altcoin Sherpa highlighted<\/a> the recent price action, suggesting that PUMP has shown \u201csome great strong moves lately\u201d and a breakout and \u201chated rally\u201d could be coming soon.<\/p>\n He previously forecasted that the bottom would happen \u201crelatively soon,\u201d and it would likely be followed by \u201csome sort of giga crime pump.\u201d<\/p>\n The recent recovery appears to be partially driven by the platform\u2019s buyback program and whales\u2019 renewed interest in the token. Notably, a large-scale investor that previously lost $125,000 on PUMP purchased $3.16 million worth of tokens on Thursday. Lookonchain shared<\/a> that a whale spent 17,542 SOL to buy $1.06B of $PUMP at $0.00297.<\/p>\n Meanwhile, a community member noted that \u201cPumpFun has pivoted to what seems to be 100% token buybacks. <\/strong>98% of yesterday\u2019s PumpFun \/ PumpSwap revenue went to buying PUMP today.\u201d<\/p>\n Similarly, On-chain sleuth EmberCNB detailed<\/a> that Pump.fun transferred 12,000 SOL, around $2.16 million, to its buyback address on July 30. It\u2019s worth noting that the memecoin launchpad started a repurchase initiative on July 16, when the token hit its ATH.<\/p>\n According to the report, Pump.fun initially transferred<\/a> 187,770 SOL, approximately $30.53 million, from its fee wallet to the buyback address. Since then, the platform has repurchased 3.828 billion PUMP tokens for 129,100 SOL, valued at $21.5 million.<\/p>\nPump.Fun Buybacks To Fuel The Recovery?<\/h2>\n