Will Solana Hit $200? Pump Fun Dumps $23M of SOL

$23 Million Solana Sell-off: A Whale Transaction

On November 26, 2024, Lookonchain, a whale transaction tracker, reported a significant sell-off involving Solana-based meme coin generator, Pump Fun. The report revealed that Pump Fun sold a total of 99,999 SOL tokens, valued at $22.74 million, on the Kraken cryptocurrency exchange.

The sale is part of Pump Fun’s larger token liquidation strategy, as the company has earned over 1.487 million SOL tokens worth $345 million from generating its meme coin. To date, Pump Fun has sold 998,242 SOL tokens worth $180.4 million, with an average selling price of $180.70 per token.

While this sell-off might not seem excessive given current market conditions, it has the potential to influence market sentiment. The selling pressure could create further downward momentum for Solana’s price, which is already in the midst of a price correction.

Solana (SOL) Technical Analysis: Support Levels and Key Indicators

According to expert technical analysis, Solana is currently trading at a strong support level around $230. However, the ongoing market correction and the selling pressure from large investors, such as Pump Fun, have caused SOL to struggle at this level.

If Solana fails to hold this support level, it could experience a price drop of around 12%, potentially reaching the $200 mark in the coming days. Traders and investors will closely monitor the following technical indicators for clues on SOL’s future price direction:

• Exponential Moving Average (EMA): SOL is currently trading above the 200 Exponential Moving Average (EMA) on a daily time frame. This indicates that the overall trend for Solana remains bullish, suggesting that the uptrend could resume once the current correction phase ends.
• Relative Strength Index (RSI): Solana’s RSI is currently at 57.30, which is below the overbought threshold of 70. This suggests that SOL may have room for an upside rally if market conditions improve, signaling potential for future growth.

Current Price Momentum: Solana’s Decline and Increased Trading Activity

As of now, Solana is trading near the $230 mark and has experienced a price decline of over 3.55% in the past 24 hours. Despite the price decline, trading volume has increased by 24%, indicating heightened participation from traders and investors during this period of correction.

The combination of increased trading volume and the ongoing market correction suggests that investors are closely monitoring Solana’s price action, anticipating potential future price movements. If Solana can hold its support level and reverse the current downtrend, there could be a significant upside potential in the days ahead.

Conclusion: What’s Next for Solana (SOL)?

Solana is currently experiencing a price correction, which has been influenced by a significant $23 million sell-off by Pump Fun. While Solana is facing some challenges in holding its current support level of $230, key technical indicators such as the 200 EMA and RSI suggest that the cryptocurrency could still see potential upside in the near future.

Investors will be watching closely to see if Solana can maintain its support or if further sell-offs will push the price lower. Regardless of short-term volatility, the strong long-term trend indicated by the EMA and RSI points to potential future gains for Solana if the market sentiment shifts back in its favor.