PUMP has recently gained more than 11% in a 24-hour period, pushing its price to approximately $0.00302 with a market cap of around $1.06 billion. This rally, fueled by nearly $400 million in trading volume, signals a rebound after weeks of a sustained downtrend where the token lost over 50% of its value.
The primary driver behind this recovery is a strategic buyback program. Between July 16 and 30, Pump.fun purchased nearly 3 billion PUMP tokens, spending 118,351 SOL (about $19.26 million) to reduce the token's circulating supply. The platform further intensified this effort on July 31 by dedicating 98% of its daily revenue to ongoing buybacks, which triggered a 27% price surge on that day alone. The resulting supply squeeze has helped create favorable conditions for the recent price bounce.
Additionally, the token's rally is a technical rebound from an oversold state. The seven-day Relative Strength Index (RSI) climbed from 28 to 33.15, indicating a shift from a seller-dominated market to one with increasing buyer interest. PUMP's price also moved above its seven-day exponential moving average, which is now acting as a new support level.
The broader speculative climate in the Solana ecosystem is also contributing to PUMP's gains. July saw 18 million new tokens minted on the network, driving renewed interest in token launch platforms. While PUMP faces stiff competition from LetsBONK.fun, the general market trend of capital rotating into smaller-cap altcoins is providing additional tailwinds. The outlook remains volatile, with PUMP's future momentum dependent on its ability to sustain its buyback program amid competitive pressures.
August 2025, Cryptoniteuae