The price of Solana (SOL) shows a remarkable recovery, rising 10% after a significant $55 million transaction by Pump.fun on the Kraken exchange.
Massive Sale and Unexpected Surge
On January 1, Pump.fun executed a double transfer of SOL to Kraken totaling $55 million. The first payment of $22.8 million was made at 4:37 PM UTC, followed by a second one of $32.7 million at 5:45 PM UTC. Contrary to expectations, this massive sale triggered a price surge from $189 to over $200 in less than an hour. Despite significant selling pressures, the crypto market shows resilience, indicating strong demand for Solana.
Optimism Driven by Solana ETF
Optimism surrounding Solana is growing with the increasing probability of approval for a spot ETF in the United States. According to Polymarket, the chances of validation are now at 76%. Major asset managers like VanEck, Grayscale, and 21Shares are vying to launch the first Solana ETF, with the SEC expected to make initial decisions by January 25. The approval of the first Solana ETF in Brazil strengthens the positive outlook.
Prospects for 2024
Solana's ability to maintain its valuation despite massive sales and the prospects for ETF approval suggest significant bullish potential for 2024. Bitwise has set an ambitious target of $750 for SOL, reflecting institutional confidence in the blockchain's potential.
The price recovery of Solana and growing optimism around the ETF approval reinforce confidence in the positive trajectory of this crypto asset in 2024.
