PUMP surged by 7265.66% over the past year as a result of a technical turnaround

On September 18, 2025, PUMP declined by 505.68% over a 24-hour period, bottoming out at $0.007764. Over the subsequent week, PUMP surged by 401.45%, saw a remarkable increase of 7265.66% in a month, and matched this one-year gain with another 7265.66% rise.

The token underwent a significant correction during the trading day, but quickly bounced back the following week, indicating increased volatility and a pronounced bullish trend in the medium term. The drop to $0.007764 established an essential support zone, which many traders and market analysts identified as a crucial inflection point for PUMP’s price movement. The rapid 401.45% recovery over seven days demonstrated a sharp transition from a bearish phase to a bullish one, with short-term trading dynamics and order flow discrepancies cited as possible contributing factors.

The asset’s impressive returns of 7265.66% over both monthly and yearly timeframes highlight its unusual performance, reflecting broader market optimism and speculative activity. Such a dramatic rebound points toward a possible reassessment of the asset’s underlying value or a renewed speculative narrative, though such extreme price swings in a short time are rare and deserve closer examination.

This movement also spotlighted the significance of technical analysis in detecting price shifts. The coin broke down and then retested vital moving average levels, with the 50-period and 200-period averages serving as important dynamic support and resistance. Technical traders closely monitored these shifts, adjusting their strategies in accordance with the strength of the reversal.

Backtesting Hypothesis

One possible methodology for assessing this technical pattern is a mean-reversion strategy that leverages the retest of major moving averages and the sharp intraday reversal. This plan would involve opening a long trade once the price closes above both the 50- and 200-period moving averages, setting a stop loss just beneath the most recent intraday low, and aiming for a move that matches the distance from the previous support level. This technique is intended to take advantage of the reversal trend while controlling downside exposure with defined risk management.