Solana News Today: SOL Dump? Pump.fun Quietly Sold 65,000 Tokens

While the Solana ETF launched by Volatility Shares failed to take off, pump.fun allegedly sold 65,000 SOL worth a whopping $8.22 million.

Lookonchain claims that fun sold a massive amount of 65,284 SOL tokens.

The SOL token faces resistance at the 20-day EMA at $132.51.

Solana ranks second among the blockchains that generated the most fees this week.

Blockchain analytics firm Lookonchain has questioned the massive SOL transaction. According to the platform, meme coin generator pump.fun on Solana may have quietly sold 65,284 SOL ($8.22 million).

This was achieved through a deposit to the cryptocurrency exchange Kraken, which then withdrew the same amount of funds from three newly created wallets, which were immediately sold for $126.

A similar pattern was seen on March 25, when 104,120 SOL ($14.97 million) was deposited into Kraken, then withdrawn and sold for $144.

Related Article: Solana (SOL) Price About to Plunge 16% on Social Media Optimism

While this could just be a coincidence, such transactions indicate a large amount of unloading that could put downward pressure on SOL prices.

pump.fun itself is a major player in the Solana ecosystem. Data from Dune shows that it has generated $610 million in fees and facilitated $1.1 billion in trading volume since its inception.

Price Analysis: Key Levels to Watch

SOL is currently trading at $127.49, up 2.5% in the past 24 hours. According to CoinMarketCap data, trading volume surged 36% to $3.12 billion, indicating increased trading activity.

However, Solana faces key resistance at the 20-day EMA at $132.51. A breakout above this level could spark a bullish move, but a failure to break above this level could result in further consolidation.

According to the daily chart below, SOL’s Relative Strength Index (RSI) reading is 43.60, which means that bears and bulls are evenly matched. However, the gradient of the lines indicates that bullish pressure is rising.

SOL is testing the resistance at the middle Bollinger Band ($130.82), and if a breakout is successful, investors could see the altcoin break above the upper band resistance at $142.56.

Solana’s Growing Fee Revenue and Market Influence

Despite the short-term price uncertainty, the Solana network continues to thrive. This past week, Solana ranked second among blockchains in fee revenue for the week, earning $6.76 million, just behind Tron ($11.75 million) and slightly ahead of BNB Chain ($6.71 million).

Additionally, according to a March 31 X post by researcher Dan Smith, Solana’s network REV (real economic value, a metric that tracks the value generated by user activity) rose 54% to $18.5 million, while BNB Chain’s network REV fell 38% to $6.7 million.

ETF Market Has Dry Up

Institutional interest in Solana took another step forward with the launch of two Solana futures ETFs by Volatility Shares on March 20.

Called SOLZ (Solana ETF) and SOLT (2x Solana ETF), these ETFs were expected to attract institutional inflows. However, the initial response was muted.

Eric Balchunas, senior ETF analyst at Bloomberg, said the ETFs had only $1 million in trading volume in the first few days of listing.

While that’s a good performance for a new ETF, it pales in comparison to bitcoin ETFs like BITO and BlackRock’s IBIT, which traded nearly 80 times as much in their early days.

The more a product is different from bitcoin, the less institutional demand it will attract, Balciunas noted.