- Pump Fun continued its selling spree with the latest release of 40,000 SOL tokens worth $6.68 million.
- Although this continued dump was causing market speculation, overall sentiment remained bullish.
After a sustained decline, Solana [SOL] has shown some signs of life over the past month. As such, the altcoin has made a strong comeback.
Despite the recent upsurge, the market speculation remained positive, especially after the Pump Fun selling spree.
Pump Fun sells $6.68M SOL
According to Lookonchain, Pump Fun has sold another 40,000 SOL worth $6.68 million. Pump Fun has now sold a staggering 500,000 SOL tokens, worth $78.7 million.
Source: Lookonchain
The continued dump has fueled market speculation over its impact on the broader Solana market. Therefore, with this trend, investors fear that the constant liquidations are resulting in short-term price pressure, thus driving prices down.
Impact on SOL?
As expected, the market had an immediate reaction, with SOL making a slight drop of 0.73%, at press time, defying the overall market trend.
Prior to this, Solana had been on an upward trajectory, hiking by 8.34% on weekly charts and 14.60% on monthly charts to reach a two-month high of $168.
This shows that even though SOL experienced a sharp decline on daily charts, overall market sentiment remained positive.
Source: Coinglass
This market sentiment is shown by the fact that most traders are taking long positions.
According to Coinglass data, Solana’s perpetual futures are mostly concentrated among long accounts.
As such, long position holders held 82.34% while shorts held 4.66%. This implies that most traders are bullish and expect the prices to rise.
Source: Santiment
Additionally, Solana’s Open Interest(OI) per exchange has surged over the past week from a low of $705.3 million to $965.17 million.
This shows that investors are continually opening new positions while holding the existing ones even during the market downturn.
Source: Coinglass
This is further strengthened by the fact that OI has hit a three-month high of $3 billion.
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Simply put, although Pump Fun is continually increasing supply, the overall market remains bullish.
This is evidenced by most investors taking long positions and rising open interest. Therefore, if these conditions are maintained, SOL will attempt the next significant resistance level at $185.
