PUMP continued its rebound this week, with the price rising back above $0.002. It has risen over 14% in the past 24 hours, with a trading volume of approximately $135 million, indicating that market buying continues to absorb the new circulating supply after the large-scale unlocking.

BOOST buyback absorbs supply

This surge has attracted attention primarily because it occurred following a large-scale unlock. According to the project's plan, approximately 32.5 billion PUMPs allocated to investors and 50 billion tokens allocated to the team have become available for unlocking. Previously, many traders worried that unlocking this size would lead to a concentrated sell-off.

The article mentions that Pump.fun's BOOST mechanism has become a significant variable. The increased supply after unlocking did not immediately lower prices; the market is still absorbing this new supply. The remaining allocations will not all enter the market at once, but will be released gradually over the next 36 months.

Spot demand supports rebound

In addition to the price rebound, trading activity has also increased significantly. PUMP's daily trading volume has risen to over $135 million, a substantial increase from previous levels, with some trading days seeing increases of over 500%. This higher trading participation has helped the price regain the $0.002 mark.

Data from the derivatives market is also attracting attention. While open interest has recently declined, token prices have continued to rise. This combination typically suggests that the current rally is driven more by spot demand than by rapid expansion of leveraged positions.

Short-term focus is on $0.00215.

From a short-term perspective, the market's next resistance level to watch is between $0.00210 and $0.00215. Previous rallies have failed to hold above this level. If the price breaks through this level, the next key resistance zone is likely between $0.0025 and $0.0028.

On the downside, the $0.00185 to $0.00190 range is considered a near-term support area. A deeper pullback could see the market retest the $0.00170 area. The article also notes that a drop back to around $0.00130 would significantly weaken the current bullish trend.

Additional information:Solana ecosystem trader Ansem publicly disclosed that he established a long position around $0.001675. This statement brought more attention to PUMP in the early stages of the rebound, roughly coinciding with the recovery in sentiment within the Solana meme coin sector.