Pump.fun (PUMP) has put up an impressive rally recently, surging nearly 90% over the last two weeks. The sharp rally has caught the eye of traders across the market and pushed the token to levels few expected at the start of the month.

However, analyst Ali Charts points out that the TD Sequential indicator, often used to track turning points, is flashing a sell signal for the PUMP token. This warns of an impending profit-taking from investors, which could potentially halt the rally. 

Ali Chart Flags Pump.Fun’s TD Sequential Sell Signal 

Pump.fun could potentially face a rough time moving forward as Ali Charts observes that the TD Sequential indicator is flashing a sell signal for the token. Normally, this indicator is used to identify market turning points by analyzing sequences of closing prices relative to previous periods’ closes. 

The sell signal comes after nearly 90% rally for Pump.fun for the last two weeks. According to the analysis by Ali, the price of the token rose from $0.002613 to $0.004947, a move that marked a 89.32% surge. 

With the TD sequential now flashing a sell signal, Ali expects that “Profit-taking could be about to start!.” Once selling kicks in, the price could move downwards, potentially wiping the recent gains, partially. Market watchers now see the coming week as a test of strength. 

Pump.Fun’s Buybacks Fuel Confidence

One of the biggest reasons behind the price rally has been the recent buybacks by Pump.fun. The platform has spent about $1.8 million each day to purchase its token. With the current rate of buybacks, market watchers believe that over a full year, that could equal around $657 million.

That amount works out to nearly 14% of the token’s fully diluted value. At this rate, the platform could remove about 40% of the current supply within a year.

This steady buying has convinced many investors that the token has strong backing. One trader on X even said, “you are not bullish enough,” reflecting growing confidence that the buybacks can sustain demand.

Pump.fun Reclaims Dominance Over Bonk.fun

Alongside price action, Pump.fun has established itself as the best player in the crypto launchpad arena. The platform now commands 66% of the market share, which is three times more than the 22% of Bonk.fun. That is a big switch considering that earlier, BonkFun was commanding more market share than Pump.fun. 

Blockchain News reported earlier that Pump.fun was losing share to its competitor. However, recent figures reveal a strong turn-around and the platform not only re-takes the lead, but widens its margin. Having two-thirds of the market provides Pump.fun with an advantage in user and project attraction, a reinforcing loop for the price.

This dominance, and the buyback program, are both adding confidence to token holders. The long-term picture is favorable although technical signals suggest that selling pressure is likely to be experienced in the near term.