Recent sale of 4.1 million SOL tokens by Pump.fun, amounting to approximately $741 million, has caught the attention of traders and analysts. The event occurred on May 19, 2024.
Trading Activity of Pump.fun
Pump.fun started selling off 4.1 million SOL tokens. Out of this, about 264,000 SOL were directly sold for USDC at a price of around $158 per token, while the bulk of approximately 3.84 million SOL was transferred to the Kraken exchange for potential sale at a higher price of around $182 per token.
Consequences for Solana Traders
Large-scale sell-offs can apply significant downward pressure on token prices. Following the Pump.fun activity, Solana's price dropped over 7%, briefly reaching nearly $147 before stabilizing near $150. This sudden movement raised alarms among traders, particularly as technical indicators like the Relative Strength Index (RSI) dipped, signaling potential oversold conditions.
Market Impact & What to Expect Next
This event is not just a matter of one wallet or project. A large sale from a known project can cause ripple effects across the crypto market, particularly among other layer-1 tokens. The transfer of SOL to Kraken indicates increasing liquidity, yet raises the risk of further selling. Key support lies around $150; a break below could lead to panic selling, whereas a rebound might set the stage for recovery.
The positioning of Pump.fun in the market and its subsequent activities will require careful monitoring from traders to understand how best to adapt to the rapidly changing conditions in the Solana market.
