Big Buyers Are Quietly Accumulating PUMP as Retail Investors Exit – What's Next for the Token?

PUMP has dropped by 12% as decentralized exchange (DEX) users decreased, with on-chain data showing $11.3 million in outflows.
CoinGlass highlights significant liquidity around the $0.0046 mark, a level where short-covering rallies often initiate.
Despite the drop, on-chain and derivatives data indicate a potential reversal might be forming for Pump.fun [PUMP].

Key Takeaways

PUMP has dropped by 12% as decentralized exchange (DEX) users decreased, with on-chain data showing $11.3 million in outflows.
CoinGlass highlights significant liquidity around the $0.0046 mark, a level where short-covering rallies often initiate.
Despite the drop, on-chain and derivatives data indicate a potential reversal might be forming for Pump.fun [PUMP].

Pump.fun [PUMP]

Increasing Network Activity

Recent on-chain data reveals a notable uptick in user engagement with the Pump.fun protocol. As reported by Artemis, the number of active users making transactions surged to 110,200.

This spike does not explicitly indicate a bullish or bearish trend, but it does reflect mixed market dynamics. Transaction volume during this period reached $1.5 million, showcasing an increase in trading activity on the platform.

Pump.fun - Launchpad Daily Active Users

Source: Artemis

However, given the current bearish sentiment, it appears that many transactions were driven by sellers looking to reduce their exposure. The Total Value Locked (TVL) indicators suggest ongoing heavy selling pressure, with approximately $11.33 million worth of PUMP leaving the market within just 24 hours.

Diverging Sentiment: CEX vs DEX Investors

A noticeable divide has emerged between the sentiment of decentralized exchange (DEX) investors and their centralized exchange (CEX) counterparts.

Reports indicate that DEX investors have largely adopted a bearish perspective, as evidenced by a decline in both user activity and transactions. The number of transactions fell to $8.4 million, involving only 221,000 users. Such declines typically signal that investors are pulling back, possibly after selling their holdings.

Spot DEX Transactions

Source: Artemis

Conversely, Spot investors on centralized exchanges have continued to accumulate PUMP. CoinGlass reported that at the time of writing, investors had spent $3.11 million on PUMP, following an impressive $35.85 million in purchases during the week ending October 27. This divergence underscores the uncertainty in short-term sentiment while indicating potential liquidity shifts.

Revenue Trends Amid Cautious Optimism

Pump.fun’s Total Revenue experienced a slight decline, dropping to $1.4 million from $1.5 million at the end of October. Nonetheless, Cumulative Monthly Revenue reached $41.9 million, with protocol fees totaling $84.7 million, ensuring the network remains in good health.

Additionally, CoinGlass liquidation data pointed to dense liquidity bands forming above the $0.0044–$0.0046 range for the PUMP/USDT trading pair. Historically, such concentrations have acted as magnets for short-term rallies, encouraging price movements to fill these gaps.

PUMP liquidation chart.

Source: CoinGlass

This situation creates a cautiously optimistic outlook for the near term. The recent sell-off appears to be more corrective in nature rather than indicative of a fundamental decline, suggesting that PUMP could stabilize before entering a broader recovery phase.