Solana has once again come into focus within the cryptocurrency market due to significant price fluctuations and recent sell-offs. Despite a rise early in April, the SOL price faces pressure, leaving investors concerned about its future.
Decline in Solana Prices
In the second quarter of 2024, Solana's price surged from $96 in April to $187 by mid-May, marking a gain of 93.5%. However, by the end of May, the price had fallen more than 20%, stabilizing at $144 by mid-June.
Sale of 4.1 Million SOL by Pump.fun
The launchpad Pump.fun, known for its Solana meme initiatives, sold off 4.1 million SOL, alarming investors and contributing to price declines. In recent months, Pump.fun has also faced criticism for enabling quick token launches and pump-and-dump schemes.
Future of Solana Prices
Despite recent declines, Solana continues to attract institutional interest. However, the ongoing sell-offs and eroding investor confidence may negatively impact the potential approval of CoinShares’ ETF. If the price fails to hold above $144, further declines to $120 could be possible.
The future of the Solana market will depend on the restoration of investor confidence and the actions of projects like Pump.fun. Observing demand dynamics and reactions to current events may provide insights into forthcoming price fluctuations.
