Pump.fun's native token climbed above the $0.002 mark on Tuesday, gaining more than 14% over the past 24 hours. The price hike followed one of the project's largest vesting events, where roughly 32.5 billion PUMP tokens allocated to investors and 50 billion tokens to the team became eligible for unlocking. Daily trading volume rose to approximately $135 million — a jump of more than 500% compared to earlier levels.
Vesting event and the BOOST mechanism
The token's price held up despite the massive unlock, largely because of the project's BOOST mechanism. BOOST creates ongoing buying pressure for PUMP through token buybacks, which helped absorb the selling pressure from the vesting event. The remaining unlocked allocations are scheduled to enter circulation gradually over the next 36 months rather than all at once, giving the market time to adjust.
Technical indicators turn bullish
On the charts, PUMP recovered above the Guppy Multiple Moving Average (GMMA) cluster, a sign that the short-term trend is gaining strength. The Supertrend indicator also turned bullish. The token is now attempting to break above the upper boundary of a long-term descending channel that has contained its price for months.
Interestingly, open interest declined while the token price rose. That suggests spot market demand — not leveraged speculation — played a larger role in the recovery. That's a healthier signal for a sustained move.
Solana trader's position and key levels
Solana trader Ansem publicly disclosed a long position around $0.001675, drawing additional attention to PUMP during the early recovery phase. The next technical resistance zone sits at $0.00210 to $0.00215. Immediate support is at $0.00185 to $0.00190, with deeper support at $0.00170. The bullish structure would be invalidated if the token falls below $0.00130.
A long-term target of $0.005 is possible if the current breakout develops into a sustained trend. That would require continued buying pressure and the ability to absorb future vesting releases over the coming months.
For now, the token's ability to hold above the $0.00185 support level and keep volume elevated will determine whether this rally has legs — or whether the vesting overhang eventually catches up.
