Here's Why SOL Comeback Will Be Explosive

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Will Solana Price Delay $200 Breakout as Pump Fun Sells $18.9M in SOL? – Crypto News

Published

1 year ago

September 29, 2024

Dripp

Solana price is down 0.83% on this low-volatility Sunday, currently trading at $155.44. The renewed selling pressure can be attributed to substantial selling from the Pump.fun fee account, alongside a natural pullback after a three-week rally. Will the bearish reversal strengthen the seller’s grip, or are buyers waiting for a dip opportunity.?

Will Pump.fun’s $18.9M SOL Sell Prevent Solana Price from $200 Breakout?

According to blockchain insight platform Lookonchain, the Pump fun fee account has sold 122,250 SOL(approximately $18.9 Million) in the last five days.

Pump.fun’s activity has been significant, with the account generating a total revenue of 773,617 SOL (valued at $120.68 million). Out of this, the account has sold 398,313 SOL, worth $62.13M so far.

While these sales could create initial volatility and a temporary pullback in Solana price prediction, the substantial transaction volume hints at heightened network activity. As Solana continues to experience increased usage and demand, such high-value transactions from major accounts like Pump.fun reflect the network’s growing influence.

Thus, these developments could bolster long-term growth for the native cryptocurrency SOL and drive a higher price rally.

The https://t.co/DrKlYnPPqY Fee Account sold 122,250 $SOL($18.9M) again in the past 5 days!https://t.co/DrKlYnPPqY has generated total revenue of 773,617 $SOL($120.68M) and has sold 398,313 $SOL($62.13M) at an average price of $156 so far.https://t.co/8Jozj9QYlc pic.twitter.com/OUm808bBIG

— Lookonchain (@lookonchain) September 29, 2024

SOL Price Hints Short Pullback Before Next Leap

The SOL price showed a sustained recovery from $142 to $156 this week, accounting for a 10.4% growth. The buying pressure extended the V-shaped recovery in the daily chart, reflecting a drastic change in market sentiment.

Typically, this sudden jump indicates market instability and a slight retracement, the same narrative from Pump.fun selling. However, the potential pullback to the 20-day exponential moving average amid a bullish crossover between the 100-day EMA renewed the bullish momentum.

If the buying pressure persists, the Solana price could jump 17.6% to challenge the overhead trendline of a bull-flag pattern. A potential breakout offers buyers a suitable floor to drive a 51% surge to $275.

Solana price - Pump Fun — SOL/USDT -1d Chart

However, if the correction extends, the SOL price will delay the $200 breakout and retest flag support trendline— an accumulation zone since March 2024.

Frequently Asked Questions (FAQs)

The sale by Pump.fun could create short-term selling pressure, potentially delaying Solana’s breakout to $200

Solana has been consolidating within a flag pattern for the past seven months, which typically signals a potential bullish continuation if the price breaks out from this formation.

The bull-flag pattern breakout occurs, Solana’s price could see a surge of up to 51%, potentially reaching $275.

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