Key Takeaways

Pump.fun surged 11% after defending $0.0026, reclaiming $1 billion market cap. Futures demand drove gains, but sellers dumped 745 million tokens. 

Pump.fun [PUMP] successfully defended $0.0026 support, surging 11.3% to reach a local high of $0.00306. At the time of writing, PUMP traded at $0.0029, up 8.3% on the day.

Over the same period, the altcoin’s market cap climbed back above $1 billion after briefly dropping to $975 million, signaling steady capital inflow. 

So, is this the start of something bigger or a mere technical bounce?

Demand for Futures skyrocketed

Interestingly, as PUMP declined for two straight days, investors rushed into derivatives to take positions.

According to Coinalyze, the memecoin’s Funding Rates surged, reaching levels of 0.021, which are usually considered elevated.

Also, Predicted Funding Rates across exchanges averaged near +0.01%.

Typically, when the Funding Rate spikes, it signals demand for long positions.

Meanwhile, PUMP’s Long/Short Ratio sat at 2.48, at press time, where long positions accounted for 71% of the total Futures contracts. Naturally, this dominance implied that traders were betting on higher prices.