Pump.fun rallies as buybacks cut supply - Can price reclaim $0.004?
With the Fed rate hike unfolding as expected, crypto investors reacted strongly. Pump.fun [PUMP] successfully defended $0.0034, and at press time, PUMP was trading around $0.0038, up 9.6% on the daily charts. The upside move saw PUMP flip the Simple Moving Average (SMA), signaling strengthening short-term momentum. What‘s behind PUMP’s rebound? PUMP signaled a trend reversal mostly supported by both increased usage and reduced supply. While its success remains debatable, PUMP has constantly deployed its deflationary approaches to absorb pressure. In fact, the project has been aggressively buying and burning tokens in an attempt to reduce supply, as the token remains highly inflationary. Over the past day, for example, Pump.fun bought back 240 million tokens. Usually, token buybacks reduce the supply available for immediate selling, thus easing the market, even for a short term. Source: Defillama Moreover, Pump.fun saw renewed demand for the network. In fact, Active Addresses jumped to 1.2 million, according to Defillama data. Rising Active Users suggested that investors are not attracted to the protocol and jumped to access its services. Often , such high usage helps in increasing demand for the native token and, in many cases, helps to achieve growth. Is this time different though? A few days ago, PUMP jumped to a local high









