Sol declines as Pump Fun deposits 65,000 Solana to Kraken

•  Pump.fun deposited 65,000 Solana tokens worth $15.23 million to exchanges.
• SOL has declined over the past seven days by 8.23%.

Although Solana [SOL] has declined over the past few days, Pump.fun has made a massive deposit into exchanges. According to Lookonchain, Pump.fun deposited 65,000 SOL tokens worth $15.23 million to Kraken.

With the latest deposits, Pump.fun has deposited 798.869 SOL tokens worth $154 million to Kraken. It has also sold 264.373 SOL for 41.64 million USDC. It should noted that in total, since Pump.fun started operations, it has earned 1,526,937 SOL worth $362 million.

When large holders such as Pump.fun sell their holdings, it usually impacts prices. The question is, did it?

Impact on price charts

As expected, Solana has experienced a market correction over the past 24 hours. As such, the altcoin has dropped from a high of $245 to $243, at press time.

This marked a 0.82% decline in daily charts. Equally, the altcoin has declined by 8.28% on weekly charts. Before this, SOL had been on an upward trajectory, hiking by 33.72% on monthly charts.

The current market conditions, especially with increased selling in large holders, raise questions about whether Solana could see more decline.

According to AMBCrypto’s analysis, Solana is experiencing a shift in market sentiment. Since hitting a new ATH of $264, the altcoin has declined to hit a low of $221.

This recent price action shows that sellers are dominating the market while downward momentum is slowly building.

Source: Tradingview

The Relative Strength Index (RSI) was declining, while its MA spiked. When the RSI drops, it suggests that sellers are starting to dominate the market, with higher selling pressure than buying pressure.

Thus, sellers have dominated over the past four days, when MA made a bearish crossover suggesting buyers have lost momentum.

This loss of momentum is further evidenced by the fact that the Relative Vigor Index (RVGI) also made a bearish crossover 3 days ago.

Source: Coinglass

Looking further, Solana’s Long/Short Ratio showed that short position holders were dominating the market. As such, shorts have a total of 52%, implying that most investors are bearish and are betting for prices to decline.

Source: Santiment

Finally, Solana’s Open Interest(OI) per exchange has declined over the past week from $2 billion to $1.5 billion. The decline in OI suggests that investors are closing their positions while the market lacks new entrants.

Read Solana’s [SOL] Price Prediction 2024–2025

In conclusion, while the Pump.fun sale had a potential impact on price charts, the overall SOL market is seeing increasing bearishness. As such, if this negative sentiment takes hold, Solana could decline on its price charts.

If it does decline, SOL could see a drop to $220. However, if the bulls regain control, the coin could reclaim the $260 resistance.