The price of PUMP is close to breaking even during the launch of Cashback Coins
PUMP price is firming below a descending trend line as the new cashback model reshapes traders’ motivations.
Summary
- PUMP is pushing below the descending line after the recent recovery.
- Pump.fun’s new Cashback Coins rewards from creators to sellers.
- A significant breakout could trigger an extension, while a rejection keeps downside risk in play.
Pump.fun’s native token PUMP was trading at $0.002162 at press time, down 3.2% in the last 24 hours. Over the past seven days, it has moved between $0.001843 and $0.002355, placing the current price near the upper end of that range.
The token is up 13% for the week, but is down about 15% in the past month. Trading activity has been accelerated. Spot volume reached $110 million in the past 24 hours, a 56% increase from the previous day.
Derivatives show similar downloads at work. According to CoinGlass data, futures volume increased by 38% to $234 million, while open interest increased by 1.08% to $174 million.
The increase in volume accompanied by a slight increase in open interest suggests that new positions are being opened, although growth in the ratio remains limited.
Cashback Coins introduces a new incentive model
The latest price pressure comes as Pump.fun (PUMP) makes a structural change to its launch model.
On Feb. 17, the platform announced Cashback Coins, a feature that allows creators to choose between regular Creator Payments or redirecting those costs to merchants and owners. The decision must be made before launch, and once the token is live, it cannot be changed.
Under the Cashback model, marketplace participants, not the creator, receive all creator payments. The goal is to address criticism that some token providers are raising funds without offering long-term value.
This change can affect short-term trading behavior. Rewards are tied to trading activity as opposed to passive holding. When volume increases, more payments are generated and redistributed.
That structure may encourage high profits and short speculation. At the same time, it can increase volatility if traders quickly cycle in and out of positions to maximize rewards.
Technical analysis of PUMP price
On the daily chart, PUMP is trading below a clear descending line drawn from the previous swing. The pattern shows a lower high, while the low has started to settle near $0.0021. The price is pressing between the $0.0021 support and the $0.0023 resistance.
Bollinger bands are getting tighter, indicating a bullish contraction. If the diameter becomes this small, expansion usually follows. Orientation will depend on which level comes first.
Momentum improved but did not change bullish. The relative strength index is near 45, after bouncing off the lows earlier in the month. It’s always below 50, which means consumers are never in control.
A continuous movement of more than 50 will strengthen the momentum. To re-hold, bulls must close above the descending line and the 20-day moving average, ideally with a strong increase in volume.
Current resistance is around $0.0023. A break above that level could signal the start of a move higher at $0.002355. A strong drop below $0.0021 will reveal a pocket of lower cash and return momentum back to sellers.
