Pump.fun's native token PUMP has surged 24% following an unexpected shift to near-total revenue buybacks, signaling a potential reversal after a 67% post-ICO crash. The Solana-based memecoin launchpad now deploys approximately 100% of daily revenue – generated from its platform and PumpSwap DEX – to repurchase tokens, a significant increase from the initially promised 25% allocation. This aggressive strategy helped establish support at $0.002470 after PUMP bottomed at $0.002265, with on-chain data confirming 98% of July 30th's revenue was used for buybacks.
Technical indicators suggest bullish momentum, with PUMP/USDT breaking out from a descending channel that formed after its record $500 million ICO. The token has also completed a double-bottom pattern at $0.00310, projecting short-term targets of $0.00360-$0.0040 (representing 20-50% upside from current levels). Momentum indicators show recovery, with RSI climbing toward bullish territory at 47 and MACD death cross patterns reversing.
Despite these developments, sustainability concerns persist. Rival platform LetsBONK.fun continues eroding Pump.fun's market share, with Dune Analytics showing declining weekly revenue – though still substantial at $10.2 million. The project maintains a $398 million treasury from historical fees (2,016,391 SOL), but analysts question whether 100% buybacks are feasible long-term. Market headwinds include delayed Federal Reserve rate cuts and whale sell-offs that previously moved $160 million worth of PUMP to exchanges, contributing to its 67% collapse from the $0.0068 post-listing high.