Pumpfun's significant deposits on Kraken exert pressure on the Solana market, prompting changes in price and market sentiment.
Overview of Solana Market Situation
Recently, Pumpfun transferred 87,787 SOL ($12.58M) to Kraken, marking another significant deposit. So far, Pumpfun has deposited 2,433,286 SOL ($485.7M) at $200. Additionally, it sold 264,373 SOL for 41.64M USDC at $158. These activities continue to impact market sentiment.
Market Performance and Price Movements
Solana's price chart on Binance illustrates high volatility. It surged to an all-time high before facing a sharp 96.62% drawdown, wiping out 250.95 points until mid-2022. This led to a prolonged consolidation period, followed by a recovery trend starting in 2023. SOL reached a new peak in early 2024 but has now retraced to $138, with the nearest support at $124.
Technical Indicators and Market Sentiment
The data highlights key resistance near $182 and crucial support at $124. Recently, Solana failed to sustain above the higher resistance, triggering a sell-off. The latest daily candle reflects a 4.38% drop, signaling strong bearish momentum. Historical patterns indicate Solana follows cyclical movements, where rapid surges are met with deep retracements, hinting at a potential buying opportunity if support holds.
Solana's current market conditions reflect a complex interplay between Pumpfun's actions and key technical levels. Future dynamics will depend on the ability to hold support or a breakdown below.
