Behind the popular memecoin, $PUMP, whales are cashing their millions in profits after weeks of accumulation. Recent on-chain data shows two huge wallets have liquidated large holdings, raising fresh speculation on the immediate future of the token.
The actions coincide with the fact that its native memecoin, $PUMP, rose to an all-time high of $0.008975 and then fell back to its present value of $0.006877. The current situation raises the question of whether the market can sustain itself after losing a major level at $0.0075.
Whales Take Profits After Big Gains
6AkVuG wallet was selling 466.74 million $PUMP for 3.27 million only six hours ago. The net profit of this sale was 1.96 million, which is a staggering figure of 149%.
In the same way, wallet “58teLV” unloaded 272.24 million $PUMP worth $1.95 million approximately 11 hours ago. This whale made a profit of $1.16 million, resulting in a 133% return on investment.
These exits will also have attracted the watchers of the market since both whales had amassed their stakes some two months before. The volumes of their sales suggest that they strategically moved to secure profits after the explosive surge in $PUMP sales.
Market Reaction and Technical Picture
After these whale sell-offs, the price of $PUMP has reversed off of the highs. At 0.006877, the token is currently at a critical support zone. The inability to recover the support level of 0.0075 has left the market in a panic mode.
Technical indicators reveal a daily RSI of 60, indicating that the market may consolidate and then make another attack higher. Traders are closely following whether traders will be able to hold the existing level or whether the market will keep on making more profits and drive the prices downwards.
What It Means for $PUMP
Nevertheless, despite the recent whale activity, $PUMP is among the most discussed memecoins on Solana. It is highly visible in the ecosystem because it is the native token of the Pump.fun, the biggest memecoin launchpad.
Nonetheless, the decline may have short-term market consequences due to the profit-taking of the early whales. Provided that new buyers intervene to take up the selling pressure, the memecoin may stabilize and make another run.
On the other hand, if there is a breakdown of support, the token is likely to plunge further to establish a better footing.
Meanwhile, the whole market is watching what the market will do with these whale exits. Whether this is a standstill or a point of turnaround for $PUMP is yet to be examined.
