Finance

Solana Faces Crucial Test as Pump.Fun Transfers Millions to Kraken and Market Awaits Price Action

6 hours ago
Bitcoin Ethereum News

In the past five weeks of 2025, a major player in the cryptocurrency world, Pump.Fun, has stirred things up by divesting a large quantity of Solana ($SOL) tokens and moving the proceeds to the Kraken exchange.

The scale of the operation is hard to fathom, with some 1.021 million SOL, worth around $208.22 million, being offloaded since January. This hyperaggressive selling, coordinated with some not-so-covert market moves, has traders and investors on high alert, anticipating the next big dip or pump and keeping an especially close watch over Solana’s price action.

To put the scale of Pump.Fun’s operations into perspective, since its launch, the platform has received a total of 2.724 million SOL in fees. Of that amount, an astounding 2.567 million SOL (valued at $508.98 million) has already been sold and transferred to Kraken. The average selling price for these transactions has been around $198 per token. This recent price action is mostly the work of the platform Pump.Fun, which has in general been a price driver up and down in the Solana ecosystem recently. The latest transaction it has done—140,000 SOL (around $26.62 million)—happened just five hours ago.

A Critical Moment for Solana: Testing Key Support Levels

Moving such a large number of SOL tokens to Kraken—not to mention the large-scale selling they did over the past month—has left many Solana holders looking toward the horizon with dread. The implication is that Solana’s overall value has seriously and maybe permanently diminished, and so the price can no longer be reliably expected to go up over any timeframe. Recently, Solana’s price has been dangerously close to crossing an important support threshold. The assumption is that if it drops below this threshold, it may well keep dropping and if it stabilizes above, then there is a decent chance of it going up.

Why the support zone matters:

– Each time $SOL reached this level, it managed to bounce back.

– It climbed above $250.

– Now, market trends and volatility have some traders worried.

– That worry is focused on what would happen if Solana broke through the support zone.

– Some are quite certain this could not and would not happen.

– Others are dismissing it as a rare and unlikely scenario.

– But we all know a sharp decline in Solana’s price would hit its investors hard.

The complexity of the situation is heightened by the recent minting of around $6 billion USDC on the Solana network. This stablecoin minting could prove to be a major driver for Solana’s price, either acting as a stabilizing force to keep the token’s value in check or as a potential source of upward volatility if the newly minted tokens are used in large transactions. Yet the minting activity could also indicate that investors expect Solana’s price to dip and are using the USDC minting as a cover to provide more liquidity around the Solana price.

The Role of Pump.Fun and Whale Activity in Solana’s Future

The Solana market’s massive movements in the wake of Pump.Fun serve as a reminder of the pay-to-play world that is the cryptocurrency market. Until 2023, Solana had garnered positive sentiment from many investors. Now, however, according to company data, the platform sells $SOL an average of $198. If the current price for Solana is anything close to that, then it seems as if the company may not believe in the sustainability of $SOL’s price. These recent developments urge investors to ask the question, “What’s next for Solana?”

Continued selling from Pump.Fun, along with other whale activities, looks set to keep affecting overall market sentiment and pushing $SOL’s price down. With how large these transactions are, it really seems like some major players have it in for Solana at the moment. Some still maintain that Solana’s long-term price history affords it enough support to keep the price stable, but the volume keeps coming, and it’s making us reappraise just what kind of support Solana has. Whether it can maintain its major support level now looks more crucial than ever.

Conclusion: Solana’s Path Forward

With Solana nearing an essential support level, everyone’s focus is on the immediate price action of the token. The intense selling, especially from Pump.Fun, has only added more uncertainty to what is going on with Solana’s price, and traders are watching closely to see if the token can hold the support zone. If Solana breaks below said support zone, the market will likely take a sharp downturn; many observers see a Solana price under $160 as potentially on the horizon if the downturn is serious.

Nonetheless, the freshly minted USDC on Solana to the tune of $6 billion may offer a ray of hope for the token’s stability. Whether this new liquidity will help the price hold above a buck or will do the opposite remains to be seen—obviously, if the price does hold, that’s a sign it’s acting as a stablecoin. We’re in a window of critical price action for Solana right now, with $SOL very much at risk of just another episode of declining value following too many other such episodes in the not-so-distant past.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!

Image Source: diegothomazini/123RF // Image Effects by Colorcinch

Source: https://nulltx.com/solana-faces-crucial-test-as-pump-fun-transfers-millions-to-kraken-and-market-awaits-price-action/