Is a “bearish” pattern about to fuel a bullish burst? As Bitcoin and Ethereum edge higher, Pump Fun (PUMP) is pressing beneath a key moving average while building out a textbook harmonic structure. The twist: this setup often rallies into its completion zone before any reversal attempts. If momentum flips at the right spot, traders could see a swift move into overhead levels that matter.

The Setup: A “Bearish” Butterfly With a Bullish Leg

On the 4H chart, PUMP is shaping a Bearish Butterfly that typically drives a rally along the CD leg into the Potential Reversal Zone (PRZ). Price rebounded from Point C near $0.003414 and is hovering around $0.0037–$0.0038, just under the 100-hour MA at $0.004343—a pivotal short-term barrier. A decisive break and close above that MA would strengthen the case for a push into the PRZ at $0.004935–$0.005404 (1.272–1.618 Fib extensions).

Why Traders Should Care Right Now

A market bid under BTC and ETH provides a supportive backdrop for alt swings. If PUMP reclaims its short-term trend level, the path to the PRZ can be fast and volatile—fertile ground for tactical trades. But harmonic completions are also places where sharp reversals begin, so planning entries and exits in advance is essential.

Levels That Matter

• Trigger/confirmation: 4H or at least 1H strong close above $0.004343 (100-hour MA).
• Upside targets/PRZ: $0.004935–$0.005404 (watch for exhaustion and reversal signals).
• Key support/invalidation: Lose $0.003414 and the pattern’s bullish leg weakens; next downside zone sits at $0.0031–$0.0030.

Actionable Trade Plans

• Breakout-continuation: Wait for a close above $0.004343 and a retest that holds. Consider partial profits into $0.00495 and trail remainder toward $0.00540. A conservative stop sits below $0.003414; aggressive traders may use a tighter buffer under the reclaimed MA.
• PRZ reaction trade: If price rips into $0.004935–$0.005404, watch for wicks, momentum loss, or RSI divergence to take profits on longs or cautiously fade with tight risk. Protective stops should sit just above the PRZ.
• Pullback plan: If $0.003414 fails, avoid catching the knife. Only consider the $0.0031–$0.0030 zone with confirmation (higher low, strong bounce) and tight stops below $0.0030.

Risk, Liquidity, and Memecoin Caution

PUMP is a memecoin—highly speculative, prone to violent swings, thin order books, and slippage. Patterns can fail abruptly, and rapid reversals are common near PRZs. Manage exposure carefully, avoid leverage creep, and never allocate funds you can’t afford to lose.

• Keep position size small (e.g., 0.5–2% account risk per idea).
• Use limit orders around key levels to control fills and slippage.
• Predefine exits for both profit-taking and invalidation—don’t improvise mid-trade.

Checklist for Today

• Set alerts at $0.004343, $0.004935, and $0.005404.
• Track 4H close relative to the 100-hour MA for confirmation.
• Monitor volume expansion on breakouts and weakening momentum near PRZ.
• Watch perp funding/OI for froth; rising OI into resistance raises reversal risk.
• Map a trailing stop plan once first target is hit.

Bottom Line

The Bearish Butterfly on PUMP can still fuel a near-term grind higher into the PRZ—then the real decision point begins. Trade the breakout only with confirmation, respect invalidation at $0.003414, and stay disciplined at resistance. Remember: this is a memecoin—opportunity exists, but risk management comes first.

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