Large-scale Solana investor offloads assets: Could Solana's value fall below $140 stability level?
Pump.fun, a significant Solana (SOL) holder, has unloaded 156,425 SOL worth $25.74 million onto Kraken, adding to their total deposits of over $640 million. The frequent and sizeable transfers suggest a deliberate exit strategy.
This move comes as market sentiment, both among retail and institutional investors, tilts heavily towards bearish territory. Solana has seen a 5.63% drop in the past 24 hours, trading at around $163.07.
The bearish sentiment is further supported by technical indicators. Solana has broken below its ascending trendline after failing to sustain above the $179 resistance zone, opening the door for a drop toward the $140-$145 support zone. Moreover, the Stochastic RSI is hovering in the oversold zone, indicating weak upward momentum.
The bearish outlook is compounded by data from CoinGlass, which reveals net outflows of $31.7 million on the 30th of May. This indicates that large holders are reducing their exposure, mirroring the behavior of entities like Pump.fun.
Moreover, the OI-Weighted Funding Rate has slipped into negative territory, signaling growing demand for short positions and a shift in sentiment within derivatives markets. Shorts could dominate price action, pressuring Solana to explore lower levels, especially if no new bullish catalysts emerge.
Further, liquidation data shows a sharp imbalance between long and short positions, with long liquidations totaling $18.99 million on the 30th of May, while short liquidations only reached $566.7K. This suggests that leveraged bulls were caught off-guard by the rejection from the $179 resistance and the subsequent dip.
These developments set Solana at a critical juncture. The $140-$145 support zone will determine whether bulls can mount a defense or whether sellers will drive prices even lower. If current conditions persist, a breach below this level could accelerate downside momentum and reinforce the ongoing bearish trend.
Additionally, concerns about unlocked tokens, decreased interest in memecoin projects, and MEV affecting DeFi ecosystems on the Solana network might further add to the bearish pressure. However, institutional analysts remain optimistic about Solana's long-term prospects, with price targets between $240 and $275 by late 2025.
- Despite Pump.fun's $25.74 million worth of Solana tokens being dumped onto Kraken, some institutional analysts remain optimistic about Solana's long-term prospects, with price targets between $240 and $275 by late 2025.
- The ongoing bearish sentiment in the crypto market, supported by technical indicators and net outflows of Solana tokens, has resulted in a significant drop in Solana's value, with a 5.63% decrease in the past 24 hours and a dwindling OI-Weighted Funding Rate favoring short positions.
- As Solana has broken below its ascending trendline and the Stochastic RSI is hovering in the oversell zone, the $140-$145 support zone will play a crucial role in determining whether sellers will drive prices even lower or bulls can mount a defense.
- The imbalance between long and short positions, illustrated by liquidation data showing $18.99 million in long liquidations and only $566.7K in short liquidations on May 30th, suggests that leveraged bulls were caught off-guard by the rejection from the $179 resistance and the subsequent dip, potentially adding to the downside momentum.
