Pump.fun's PUMP token posted a double-digit percentage gain as traders pushed Open Interest up by $40.83 million to $355.08 million. Whale buying and a sharp rise in the Funding Rate point to long-side positioning driving the rally, while spot investors also added to the momentum.
Perpetual market fuels the rally
PUMP's rise over the past day came primarily from the perpetual market, where traders added roughly $40.83 million in fresh capital, pushing total Open Interest to $355.08 million. Open Interest measures the capital committed to an asset's perpetual market, and its movement shows whether traders are adding more long or short positions.
In this case, long capital dominated. The Funding Rate rose from roughly 0.0007% to around 0.0072% between the early hours of 12 September and the time of writing, growing nearly tenfold. The surge suggests fresh capital over the past day came mostly from traders expecting a short-term rally.
Whales drive the push
Whales, investors who hold enough capital to influence price, stepped into the market. The Whale Retail Delta, which tracks whale involvement, showed a reading of 0.274, a significantly high positive level that implies whales played a decisive role through their buying activity.
Market sentiment also turned more bullish. Press-time data from CoinMarketCap put the sentiment reading, which gauges investor outlook on a scale of -10 to 10, at 3.53, with the metric tilting upward.
Spot investors add to momentum
Spot investors turned bullish too. Over the past 12 hours, cumulative net buying exceeded selling, with data from CoinGlass showing Netflow at -$1.13 million. A bullish outlook is marked when capital outflows exceed inflows, and the negative Netflow shows more PUMP moved into private wallets, suggesting investors expect a bullish outcome.
Continued spot buying could add to the price momentum PUMP is presently experiencing.
Source: AMBCrypto
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