PUMP skyrocketed 30% as the acquisition wallet filled up with 12,000 SOL

PUMP – the utility token of the platform launching the memecoin Pump.fun – is currently the fastest-growing name today. In the past 24 hours, its value has increased by 30%.

This increase comes right after the platform restarted the PUMP token buyback program. This event seems to have sparked interest from investors, which could drive momentum for further increases in upcoming trading sessions.

Pump.fun cuts circulating supply by 3.8 billion tokens

In a post on X on July 30, the on-chain analysis account EmberCNB discovered that Pump.fun transferred 12,000 SOL – worth approximately 2.16 million USD – to a designated wallet address to buy back PUMP tokens.

This is the latest move in the framework of the large-scale buyback program that was launched on July 16. According to analysis, initially, the platform transferred 187,770 SOL ( equivalent to approximately 30.53 million USD) from its fee wallet to fund the buyback program.

Since that time, Pump.fun has used a total of 129,100 SOL – worth about 21.5 million USD – to buy back 3.828 billion PUMP tokens from the open market.

By continuously using platform fees to buy back tokens, Pump.fun is reducing the circulating supply of PUMP, thereby creating upward price pressure. This strategy has contributed to restoring trader confidence over the past 24 hours, encouraging them to actively accumulate this altcoin and push the price up to a double-digit increase.

The influx of capital into PUMP amid a wave of optimism

On-chain data shows that this upward momentum is fully justified. According to data from Coinglass, the net inflow of funds into the spot market for the PUMP token has surged by 135% today. This confirms that capital is strongly shifting towards this altcoin since the buyback program was completed.

The net cash flow chart for PUMP | Source: CoinglassHigh net cash flow indicates that the amount of capital flowing into the market is "far exceeding" the outflow – a positive signal, reflecting increased interest from investors.

For PUMP, the increase in spot trading volume indicates that demand is being reignited. This means that traders are starting to position themselves, ready to take advantage of any price increase opportunities that may arise from the $2.16 million funding package that Pump.fun has allocated for the token buyback program.

In addition, the Balance of Power indicator (BoP) also recorded positive results, confirming that demand is increasing for this altcoin. As of the time of writing, this indicator has reached a level of 0.77.

The BoP chart of PUMP | Source: TradingViewThe BoP indicator is used to measure the relative strength between buyers and sellers in the market, helping to identify changes in price momentum. When this index turns positive, the market is leaning heavily towards the buying side – this often paves the way for subsequent price increases.

The bulls aim for the $0.004 mark

At the time of writing, PUMP is trading around $0.0031 - just slightly below the important resistance level at $0.0032.

If the capital flow continues to pour in and the price of PUMP rises, this resistance level may be completely broken and will then become a new support zone. A successful breakout could accelerate PUMP towards the target price of $0.004.

PUMP Price Analysis Chart | Source: TradingViewHowever, in the event that profit-taking increases and demand weakens, PUMP may lose all of the recent upward momentum and reverse to a level of $0.0022.

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