- Pump Fun continued its selling spree with the latest release of 40,000 SOL tokens worth $6.68 million.
- Although this continued dump caused speculation in the market, the overall sentiment remained optimistic.
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 upturn, market speculation remained positive, especially after the Pump Fun sell-off.
Pump Fun sells $6.68 million SOL
According to Lookonchain it is Pump fun sold another 40,000 SOL worth $6.68 million. Pump Fun has now sold a whopping 500,000 SOL tokens, worth $78.7 million.
Source: Lookonchain
The ongoing dump has fueled market speculation about its impact on the broader Solana market. Therefore, this trend has investors concerned that the continued liquidations will result in short-term price pressure, driving prices down.
Impact on SOL?
As expected, the market responded immediately, with SOL down slightly by 0.73% at the time of writing, defying the general market trend.
Previously, Solana had been on an upward trajectory, rising 8.34% on the weekly charts and 14.60% on the monthly charts to reach a two-month high of $168.
This shows that although SOL saw a sharp decline on the daily charts, overall market sentiment remained positive.
Source: Coinglass
This market sentiment is reflected in the fact that most traders are taking long positions.
According to Coinglass data, Solana perpetual futures are mainly concentrated in long accounts.
As such, long position holders owned 82.34%, while short positions held 4.66%. This implies that most traders are bullish and expect prices to rise.
Source: Santiment
Additionally, Solana’s Open Interest (OI) per exchange rose from a low of $705.3 million to $965.17 million over the past week.
This shows that investors are constantly opening new positions while maintaining existing positions, even during market downturns.
Source: Coinglass
This is further reinforced by the fact that OI has hit a three-month high of $3 billion.
Is your portfolio green? View the SOL Profit Calculator
Simply put, while Pump Fun is continually increasing its offering, the overall market remains bullish.
This is evident from the fact that most investors are taking long positions and open interest is increasing. Therefore, if these conditions hold, SOL will attempt the next significant resistance level at $185.