18:00 ▪
3
min reading ▪ by
Fenelon L.
The price of Solana (SOL) shows a spectacular recovery of 10% following a large transaction of $55 million carried out by the Pump.fun platform to the Kraken exchange. This rise comes in a context of high volatility for crypto.
A massive sell-off triggers an unexpected rebound
On January 1st at 5:00 p.m. UTC, Pump.fun made a double transfer from SOL to Kraken totaling $55 million. A first payment of $22.8 million was made at 16:37 UTC, followed by a second of $32.7 million at 17:45 UTC.
Contrary to expectations, this massive sale caused a rebound in the price which went from $189 to more than $200 in less than an hour.
This operation is part of a series of important movements by Pump.fun, which has already sold more than $303 million of SOL on Kraken since the start of 2024. Despite these significant selling pressures, the crypto market is demonstrating a remarkable resilience.
The limited price impact of these selloffs suggests strong underlying demand for Solana, potentially fueled by institutional investors.
The bullish outlook supported by the Solana ETF
Optimism around Solana is growing with the increasing likelihood of approval of a spot ETF in the United States. According to Polymarket, the chances of validation now stand at 76%, an indicator closely followed by investors.
Major asset managers like VanEck, Grayscale, 21Shares, Bitwise and Canary Capital are in the running to launch the first Solana ETFs. The SEC is expected to issue its first decisions by January 25, with a specific deadline for Grayscale of January 23.
The precedent set by the approval of the first Solana ETF in Brazil last August reinforces the positive outlook. Bitwise has also set an ambitious target of $750 for SOL, demonstrating the confidence of institutions in the potential of this blockchain.
Solana’s ability to maintain its valuation despite the sell-off, combined with the outlook for ETF approval, suggests significant upside potential for 2024.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.
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