Solana (SOL) is under another price pressure amid a general market downturn and a new selloff from embattled memecoin sensation Pump Fun. According to data from Lookonchain, Pump Fun has moved another 98,000 SOL to Kraken Exchange for possible selloff.
Solana Price and Pump Fun Selling Correlation
According to the Lookonchain data, the 98,000 SOL was worth $22.27 million at the time of writing. The wallet, dubbed the Pump Fun fee account, has a track record of sending SOL to Kraken over the past 2 months. Specifically, this transfer is the second initiated within 24 hours.
In the earlier Pump Fun transfer to Kraken, the memecoin launchpad deposited 90,000 SOL worth $20.5 million to the exchange. Thus far, Pump Fun has deposited 1,991,332 SOL $407 million SOL to Kraken. However, it has sold 264,373 SOL for 41.64 million USDC.
These transactions are often directly correlated with intense Solana price action. Earlier this month, the launchpad deposited 116055 SOL to Kraken, an action that came at a time when the coin was consolidating around the $230 to $250 range.
A 3.98% in Solana price accompanies this current deposit, now pegged at $233. The volatility likely stemmed from the broader market rout recorded earlier.
Will Pump Fun Selling Stop?
Pump Fun pioneered the memecoin launchpad innovation in Web3 and has made massive profits. Per current data, the memecoin launchpad has earned a total of 2.57 million SOL valued at approximately $588.6 million.
Considering its trend over the past few months, experts have speculated that the platform may not stop selling SOL in the near future. This might place an additional headwind on the SOL price moving forward.
Notably, the launchpad is currently facing legal strains, including regulatory and class action lawsuits. These events might also force it to liquidate more Solana to offset legal fees.
SOL Price and Key Projections
Over the past week, Solana’s price has seen a sharp drawdown as it continues to face rejection at the $235 level. The protocol has faced different stress tests recently amid the massive embrace of the newly launched TRUMP and MELANIA.
Despite its general price slump, market experts are still positive about the future outlook for Solana’s price. Bitwise forecasted a $750 price target for the coin this year amid a wide embrace of the protocol.
With the growing push for Solana ETF by asset managers, the coin remains on the spotlight for more rally ahead.
The post Solana Price Eyes Key Resistance As Pump Fun Sells 98,000 SOL appeared first on CoinGape.
