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PUMP jumps by 579.34% within 24 hours as short-term volatility unexpectedly spikes

PUMP jumps by 579.34% within 24 hours as short-term volatility unexpectedly spikes

Bitget-RWA2025/09/26 17:42
By:CryptoPulse Alert

- PUMP surged 579.34% in 24 hours to $0.005334, reversing a 1874.62% weekly decline amid extreme volatility. - Analysts attribute the rebound to algorithmic trading patterns or liquidity surges, not fundamental changes. - Technical indicators show RSI rising from oversold levels and narrowing MACD divergence, signaling potential short-term bounce. - A backtesting strategy using RSI/MACD signals and 1:2 risk-reward ratios aims to capture such volatility-driven rebounds.

On September 26, 2025, PUMP experienced a remarkable 579.34% jump in just one day, reaching $0.005334, even though it had dropped by 1874.62% over the previous week. Over the last month, the asset has climbed 1803.64%, matching its growth over the past year. This dramatic daily surge hints at a possible shift from the recent downward trend.

This swift 24-hour rally came after a week marked by intense selling pressure, during which PUMP’s value plummeted nearly 19-fold in seven days. Experts believe the recovery may be fueled by algorithm-driven trades or an influx of liquidity triggered by certain market events. Although the asset’s core fundamentals have not changed, technical analysis points to a possible short-term recovery following the steep decline.

The recent price movement has reignited interest among traders and automated trading systems, particularly those designed to spot sudden volatility and quick reversals. PUMP’s behavior resembles that of assets highly sensitive to rapid liquidity changes. Since there is no significant news affecting the fundamentals, it appears that market dynamics, rather than asset-specific developments, are behind the move. This has led some to speculate that the surge may be the result of coordinated efforts by traders seeking to take advantage of arbitrage or liquidity gaps.

Technical analysis reveals a significant momentum shift in the last 24 hours. The RSI has surged from oversold levels, signaling a potential reversal for some market participants. The MACD is also showing a reduction in bearish divergence, which could point to a slowing of the downward trend. While these indicators are not definitive predictors, they underscore the unusual nature of the recent price spike.

Backtest Hypothesis

A backtesting approach was designed to examine the circumstances under which such sharp volatility could be anticipated or managed. This method combines RSI and MACD signals to pinpoint likely turning points in PUMP’s price movement. The strategy treats an RSI move above 30 as a buying opportunity and below 70 as a signal to sell, with MACD crossovers providing further direction. By using both indicators, the model seeks to minimize noise from short-term swings and focus on high-probability reversal scenarios.

The system also incorporates a stop-loss set at a 20% loss from the entry point, with exits targeted at a 1:2 risk-to-reward ratio. Due to PUMP’s volatile nature, each trade is limited to a 24-hour window, and position sizes are adjusted according to recent volatility. Although this concept has not been tested with live trading data, it suggests that algorithmic strategies based on these signals might have successfully captured the recent rebound while maintaining controlled risk.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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