Originally published on: September 04, 2024
Subheading 1: Solana Token Price Drops 12% Amid Pump.fun Selling Spree
The Solana token experienced a significant downturn recently, with a double-digit decline as the memecoin launch platform Pump.fun continued to offload its SOL holdings. At the week leading up to 11:06 am UTC on Sept. 4, the Solana token price plummeted over 12%, trading at $128, down by 3.8% on the daily chart.
Subheading 2: Impact of Whale Activities on Solana Price Movement
The ongoing selling activities from Pump.fun, particularly through its fee account, have resulted in the sale of $41.64 million worth of SOL tokens at an average price of $157.50 per coin. Such significant transactions by whales like Pump.fun can wield substantial influence over a cryptocurrency’s market dynamics, as traders closely monitor these patterns to gauge short-term price movements.
Subheading 3: Factors Influencing Solana’s Price Fluctuations
The surge in memecoin frenzy on the Solana network has been cited as one of the key factors contributing to the recent pressure on the token’s price. The introduction of meme tokens via Pump.fun led to a shift in Solana’s momentum, as noted by prominent crypto analyst Luke Martin.
Furthermore, the correlation between Solana’s price and Bitcoin remains a crucial determinant in understanding the fluctuations in SOL value. Despite the correlation, Solana’s price trajectory has notably lagged behind Bitcoin’s performance, registering a decline of nearly 22% compared to Bitcoin’s 18% decrease over the past three months.
Subheading 4: Solana’s Potential for ETF Listing Boosts Market Sentiment
The possibility of a spot exchange-traded fund (ETF) listing for Solana in the US has heightened market expectations, serving as a potential catalyst for the token’s price surge. While uncertainties regarding the approval of a US Solana ETF persist, industry experts like Alejo Pinto and Manthan Dave anticipate transformative effects on SOL’s valuation once such approval materializes.
In the wake of Brazil’s pioneering Solana ETF approval and growing global interest in cryptocurrency ETFs, the prospects of a Solana ETF in the US present a promising avenue for enhancing Solana’s market presence and value.
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