Solana price is down 0.83% on this low-volatility Sunday, currently trading at $155.44. The renewed selling pressure can be attributed to substantial selling from the Pump.fun fee account, alongside a natural pullback after a three-week rally. Will the bearish reversal strengthen the seller’s grip, or are buyers waiting for a dip opportunity.?Â
Will Pump.fun’s $18.9M SOL Sell Prevent Solana Price from $200 Breakout?
According to blockchain insight platform Lookonchain, the Pump fun fee account has sold 122,250 SOL(approximately $18.9 Million) in the last five days.Â
Pump.fun’s activity has been significant, with the account generating a total revenue of 773,617 SOL (valued at $120.68 million). Out of this, the account has sold 398,313 SOL, worth $62.13M so far.
While these sales could create initial volatility and a temporary pullback in Solana price prediction, the substantial transaction volume hints at heightened network activity. As Solana continues to experience increased usage and demand, such high-value transactions from major accounts like Pump.fun reflect the network’s growing influence.
Thus, these developments could bolster long-term growth for the native cryptocurrency SOL and drive a higher price rally.
The https://t.co/DrKlYnPPqY Fee Account sold 122,250 $SOL($18.9M) again in the past 5 days!https://t.co/DrKlYnPPqY has generated total revenue of 773,617 $SOL($120.68M) and has sold 398,313 $SOL($62.13M) at an average price of $156 so far.https://t.co/8Jozj9QYlc pic.twitter.com/OUm808bBIG
— Lookonchain (@lookonchain) September 29, 2024
SOL Price Hints Short Pullback Before Next Leap
The SOL price showed a sustained recovery from $142 to $156 this week, accounting for a 10.4% growth. The buying pressure extended the V-shaped recovery in the daily chart, reflecting a drastic change in market sentiment.
Typically, this sudden jump indicates market instability and a slight retracement, the same narrative from Pump.fun selling. However, the potential pullback to the 20-day exponential moving average amid a bullish crossover between the 100-day EMA renewed the bullish momentum.
If the buying pressure persists, the Solana price could jump 17.6% to challenge the overhead trendline of a bull-flag pattern. A potential breakout offers buyers a suitable floor to drive a 51% surge to $275.Â
However, if the correction extends, the SOL price will delay the $200 breakout and retest flag support trendline— an accumulation zone since March 2024.
Frequently Asked Questions (FAQs)
The sale by Pump.fun could create short-term selling pressure, potentially delaying Solana’s breakout to $200
Solana has been consolidating within a flag pattern for the past seven months, which typically signals a potential bullish continuation if the price breaks out from this formation.
The bull-flag pattern breakout occurs, Solana’s price could see a surge of up to 51%, potentially reaching $275.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: