Could Solana Price Hit $120 After ‘Pump.Fun’ 4.1 M SOL Sell-Off?

In Q2, the Solana price rose significantly, starting from a low of $96 in April to $187 by the third week of May. This marked a remarkable gain of 93.5% over 46 days. 

However, by the end of May, Solana’s gains had dropped by over 20%. The price retested a key level at $144, identified by the Fixed Range Volume Profile tool, by mid-June.

In June, optimism grew, suggesting a potential rebound. Yet, uncertainty loomed. A negative development occurred that has shattered investor confidence in the short term. 

A popular Solana-based memecoin launchpad sold 4.1 million Solana from its holdings, which alarmed investors. What could happen next in the Solana price? Keep reading to get a full grip on this latest event.

$4.1 Million Solana Holding Dumped By “Pump.fun”

Pump.fun is a launchpad for memes that gained extensive attention for driving the Solana memecoin wave. Still, it has been criticized for enabling pump-and-dump schemes and quick-turnaround token launches.

Also, the official X accounts were suspended for Pump.fun and its founder, Alon Cohen, leaving significant room for speculation within the crypto community.

Some users even relate to ongoing investigations or potential legal concerns.

Moreover, in recent data from lookonchain, Pump.fun has been selling off its SOL holdings from May 19, 2024, onwards. It has dumped approximately 4.1 million SOL crypto, estimated at $741 million, with an average selling price of around $180 per token.

The most significant transfer was made to Kraken of 3.84 Million SOL cryptos, while another stash worth $41.64 million was sold for USDC stablecoin.

These ongoing pessimistic events pull the Solana price down alongside investors’ confidence.

A Downfall Imminent For Solana Price?

Solana has seen institutional interest despite the price declines since mid-May, and even CoinShares has filed for its ETF to be approved by the SEC.

Since then, Pump.fun launchpad has made a major contribution to its market cap and carries a significant use case through this launchpad alone. If pump.fun is down, it will dampen Solana’s price and market cap tremendously.

Once a significant drop comes, then a domino effect could extend the fall significantly. Also, A decline in the Trust of investors and experts would reduce the odds of the SOL ETF being approved.

During this week, Solana’s price dropped 11%, and an intraday fall of nearly 5% has also contributed today. At the same time, it exchanges hands at $150.42 with a market cap of 79.42 Billion.

If demand weakens and profit-taking resumes, the Solana coin price risks resuming its downtrend, and failing to hold above $144 would lead to $120.

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