Pump.fun Experiences a Surge: Will Demand Absorb the Upcoming 2B Token Unlock?

Increased Buybacks: Pump.fun’s buyback activity rose by 53%, with trading volume reaching $336 million, showcasing a surge in market interest and robust demand.
Token Unlock Warning: A significant unlock of 2 billion tokens is set for November 12, which could apply pressure on prices if market demand is insufficient to absorb the new supply.
Price Movement: After consolidating for a week, Pump.fun [PUMP] broke out and reached a local high of $0.45. At the time of writing, it was trading at $0.0044, reflecting a 17.13% increase over the last 24 hours.

Key Takeaways

Increased Buybacks: Pump.fun’s buyback activity rose by 53%, with trading volume reaching $336 million, showcasing a surge in market interest and robust demand.
Token Unlock Warning: A significant unlock of 2 billion tokens is set for November 12, which could apply pressure on prices if market demand is insufficient to absorb the new supply.
Price Movement: After consolidating for a week, Pump.fun [PUMP] broke out and reached a local high of $0.45. At the time of writing, it was trading at $0.0044, reflecting a 17.13% increase over the last 24 hours.

Pump.fun [PUMP]

Demand for Pump.fun Grows Amid Token Buybacks

Recently, Pump.fun experienced significant movement, coinciding with an increase in token buyback activity. According to Artemis data, buyback expenditures rose to $1.3 million, up from $1 million earlier in the month. Over the past month, a total of 335.1 million tokens have been repurchased, marking a 53% rise. This approach decreases the circulating supply, which tends to support the token price if market demand remains robust.

Pump token buyback
Source: Artemis

In addition to these buybacks, Pump.fun has also seen enhanced demand from the open market. Data from Coinalyze confirmed this trend. On November 10, the Buy Volume reached 4.41 billion PUMP, exceeding the Sell Volume of 3.8 billion, resulting in a positive Buy/Sell Delta of 616.77 million. This indicates a strong accumulation of tokens, as demand outstrips selling pressure, which often leads to rising prices.

Pump buy sell volume
Source: Coinalyze

Rising Network Activity and Wallet Growth

In addition to capital inflows, Pump.fun has seen an uptick in on-chain engagement. According to Artemis, Launchpad transactions ranged from 1.2 to 1.5 million. At the time of writing, transactions surged to 1.3 million, reflecting sustained adoption and network engagement. Furthermore, Dune data indicated that there are 57,000 Recurring Wallets and 28,000 New Wallets, showcasing both user retention and new user growth — a positive sign for organic network expansion.

Pumpfun launchpad transactions
Source: Artemis
PumpFun active wallets
Source: Dune

Token Unlocks: Are They a Concern?

Despite the upward trend in Pump.fun’s price, the project must contend with the looming threat of token unlocks. As reported by Dropstab, 2 billion tokens (valued at approximately $9.2 million) will be unlocked on November 12. Typically, token unlocks increase the circulating supply. If buyer demand does not sufficiently match this influx, PUMP could experience selling pressure in the short term.

Will PUMP Sustain Its Breakout?

AMBCrypto’s analysis indicates that Pump.fun has achieved a technical breakout driven by increasing demand and bolstered on-chain activity. TradingView charts reveal a clear breakout from a downward trend, complemented by a bullish DMI crossover.

Pump ema & dmi
Source: TradingView

At press time, PUMP was testing the EMA50 at $0.0045. A daily close above this level could pave the way for a move towards $0.0054, which is the next resistance area. Conversely, failing to maintain a position above the EMA20 might trigger a pullback towards $0.0040, especially if selling pressure from the unlocked tokens escalates.