Image

Solana News Today: SOL Dumping? Pump.enjoyable Quietly Sells 65K Tokens

Key Notes

  • fun has allegedly sold a massive 65,284 SOL tokens, claims Lookonchain.
  • SOL token faces resistance at the 20-day EMA which stands at $132.51.
  • Solana ranked second among blockchains with the highest fees generated this week.

Blockchain analysis firm Lookonchain has raised suspicions regarding large-scale SOL

SOL
$125.1



24h volatility:
1.0%


Market cap:
$64.09 B



Vol. 24h:
$3.31 B



transactions. According to the platform, pump.fun, a meme coin generator on Solana, may have quietly sold 65,284 SOL ($8.22 million).

This occurred through a deposit to crypto exchange Kraken followed by withdrawals from three newly created wallets that immediately sold the same amount at $126.

A similar pattern was observed on March 25, when 104,120 SOL ($14.97 million) was deposited to Kraken, then withdrawn and sold at $144.

While it could be a coincidence, such transactions indicate significant offloading, potentially exerting downward pressure on SOL price.

pump.fun itself has been a major player in Solana’s ecosystem, generating $610M in fees and facilitating $1.1 billion in trading volume since its inception, shows the data from Dune.

Price Analysis: Key Levels to Watch

SOL currently trades at $127.49, marking a 2.5% increase in the past 24 hours. According to CoinMarketCap data, the trading volume surged 36% to $3.12 billion, signaling heightened activity.

However, Solana faces a critical resistance at the 20-day EMA of $132.51. A breakout above this level could trigger a bullish move, but failure to breach it may result in further consolidation.

As per the daily chart below, the Relative Strength Index (RSI) for SOL reads a value of 43.60 which means that the bears and the bulls are evenly matched. However, the gradient of the line indicates rising bullish pressure.

Solana News Today: SOL Dumping? Pump.fun Quietly Sells 65K Tokens

Source: TradingView

SOL is testing the resistance at the middle Bollinger Band ($130.82) and if a breakout is successful, investors could see the altcoin breach the resistance of upper Band at $142.56.

Solana’s Growing Fee Revenue and Market Presence

Despite short-term price uncertainty, Solana’s network continues to thrive. Over the past week, Solana ranked second among blockchains in fee generation this week, earning $6.76 million, trailing only Tron ($11.75 million) and slightly ahead of BNB Chain ($6.71 million).

Additionally, according to an X post from researcher Dan Smith on March 31, the network REV (Real Economic Value), a metric that tracks the value generated by user activity, for Solana rose 54% to $18.5 million while that of BNB Chain dropped 38% to $6.7 million.

ETFs Are Dry

Institutional interest in Solana took a step forward with the launch of two Solana futures ETFs by Volatility Shares on March 20.

These ETFs, named SOLZ (Solana ETF) and SOLT (2x Solana ETF), were expected to attract institutional flows. However, the initial response has been lukewarm.

According to Eric Balchunas, Senior Bloomberg ETF Analyst, these ETFs saw only $1 million in volume in their first few days.

While this is decent for a new ETF, it pales in comparison to the launch of Bitcoin ETFs like BITO and BlackRock’s IBIT, which saw nearly 80x more volume in their early days.

Balchunas remarked that the further a product gets from Bitcoin, the less institutional demand it tends to attract.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Solana (SOL) News, Altcoin News, Cryptocurrency News, News

Parth Dubey

A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.

Parth Dubey on LinkedIn

SHARE THIS POST