Pump Fun Moves Another 98,000 SOL to Kraken, Solana Sell-Off Ahead?

Solana (SOL) has seen a sharp price decline over the past 24 hours, sparking concerns about increased selling pressure. The latest deposit of 98,000 SOL ($22.27 million) to Kraken by Pump Fun has fueled speculation that further downside movement could be on the horizon.

Solana Price Fluctuates Amid Large Deposits

Solana is trading at $229.33 at the time of writing, and the token has lost 2.77% in the last 24 hours. Price of the asset ranged from $235.67 to $225.26 confirming the volatile nature of the market.

Market metrics also reflect a decline in the overall market transaction volume. The market capitalization of Solana has fallen to $111.63 billion, down 3.10%, while the 24-hour trading volume has filed by 28.27% to $4.11 billion. It also shows that the trading momentum is waning, and this may have implications on the near-term price action.

Pump Fun and Its Ongoing Large-Scale Deposits

Looking at on-chain data, it is seen that Pump Fun has been transferring a large amount of SOL to the Kraken exchange.

The last 98,000 SOL deposit came after another 90,000 SOL ($20.5 million) had been transferred only a few hours before that. Such transfers are not isolated, and Pump Fun has forwarded a total of 1,991,332 SOL ($407 million) to Kraken.

Of the total staked amount, 264,373 SOL has been sold for $41.64 million in USDC with a total profit of 2.57 million SOL or $588.6 million. The constant selling pressure has led to fears of ongoing reduced pressure on the Solana token price.

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Open Interest Declines, Signaling Caution

Further proof of the market volatility can be found in Solana’s open interest (OI) data. As of the time of this writing, the total OI is $3.3 billion, with almost all of it being in perpetual contracts. The former, known as futures contracts, accounts for $19.8 million of the total.

The total open interest also dropped by 1.77% meaning that some traders may be either taking profits or closing positions due to fear of further declines. Perpetual OI fell by 1.78%. The Futures OI reduced by 0.40% which show that there has been a reduction in margin trading activity and a shows conservative market.

Is a Larger Sell-Off Coming Owing to Pump Fun?

The series of large deposits by Pump Fun raises the question of whether a larger sell-off is taking place. Solana price had dropped from its recent high of $235.67. Traders are now on the lookout for more declines in the price of Solana.

Further large-scale sales might push Solana down to its $225 support level, which may give way to a further drop. A breach of the support at this level may lead to further sell off and increased range bound trading as well as declining open interest.

Market Outlook for Solana

While the recent events were quite unpredictable, Solana is still considered one of the most significant blockchain networks. The ecosystem is still growing and there is clear institutional interest for long term development.

But the short-term behavior of prices will depend on whether the selling pressure will be taken by some buyers. In case Pump Fun or other large holders decide to transfer SOL to exchanges, traders will likely expect further declines.

At the moment, Solana’s price is still volatile. It is dependent on exchange inflows and outflows as well as the overall market sentiment.