PUMP Price Drops Despite Binance and Upbit Listings

Binance and Upbit, two major international exchanges, both announced that they’d list PUMP this morning. Despite this encouraging signal, the token’s value has been dropping for several hours.

The asset’s trading volume rose by nearly 73%, so there could be a wave of profit-taking that’s eating into PUMP’s gains. Nonetheless, there are a lot of competing explanations, so it’s hard to be sure.

Binance and Upbit List PUMP

Pump.fun’s PUMP token has been rallying for the past few days, as its new creator fees update encouraged heightened levels of trading activity. In the last few hours, though, the asset received some news that should be even more bullish: both Binance and Upbit announced that they would list PUMP.

Despite this, the asset’s price actually depreciated in the aftermath:

PUMP Price Performance. Source: CoinMarketCap

So, why is this happening? After all, Binance and Upbit routinely boost token prices with their listings, but PUMP hasn’t been a direct beneficiary. Moreover, there are actually a few other bullish factors that took place in the last few days.

Important Points to Consider

For example, Pump.fun has been conducting massive token buybacks, acquiring around $20 million in September alone. Additionally, co-founder Noah Tweedale recently gave an interview which fueled rumors of a digital asset treasury (DAT) partnership.

These pieces came together to create rapid price gains:

Despite this, however, analysts have been warning that the asset’s gains could be fragile. Now that Upbit and Binance are both listing PUMP, its trading volume has risen by nearly 73% in the last 24 hours. In other words, retail traders may be engaging in profit-taking, causing a temporary price dip.

In this ambiguous situation, it’s hard to be certain of anything. PUMP’s price has continued dropping this morning, so the Binance and Upbit listings might be unrelated. Hopefully, these major breakthroughs will engender positive momentum after the dust settles a little.

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