Solana Defies Pump.fun's $6.6M Selloff

Despite ongoing selling pressure from Pump.fun, the memecoin launch platform, the price of Solana stayed strong.

Solana price stayed strong, rising 9.3% for the week, despite Pump.fun selling $6.6 million in SOL. With $47 million still held, whales are on high alert for the next market twist.

Solana Defies Pump.fun's $6.6M Selloff

Despite ongoing selling pressure from Pump.fun, the memecoin launch platform, Solana's price stayed strong.

On October 22, Solana tokens sold by the fee account linked to Pump.fun were valued at more than $6.6 million.

According to an October 22 post by onchain intelligence firm Lookonchain, Pump.fun still owned a significant amount of Solana.

Solana Price Climbs Amid Whale Activity

Despite the sales, Solana's price went up more than 9.3 percent on the weekly chart. Data from Cointelegraph showed that XRP, the world's fifth-largest cryptocurrency, went up 0.8% in the 24 hours leading up to 11:18 am UTC, and was trading at $165.8.

The large amount of market-moving capital that "whales," or large crypto-holding entities, can deploy has a significant impact on a cryptocurrency's price action. Traders often look at whale selling patterns for clues on a cryptocurrency's short-term price trend.

Pump.fun Fee Account Continues to Pressure SOL Price

The SOL sales from the Pump.fun fee account are likely to continue putting pressure on the price.

Solana's price fell more than 12% to $128 in the week leading up to September 4, after Pump.fun sold a large amount of SOL tokens. Pump.fun earned $41 million from the sales, with each token being sold for an average price of $157.5.

According to Solscan data, the memecoin launch platform still had $47.9 million in Solana tokens in its fee account, suggesting that there could be more selling pressure.

Memecoin Craze Puts Solana Under Pressure

The price of SOL is also likely being pressured by the recent memecoin craze on Solana.

According to popular cryptocurrency trader and podcast host Luke Martin, the rally for the Solana token turned into a "crab walk" once people started mass-launching meme tokens on Pump.fun.

"The rally for Solana was fun while it lasted, but now everyone is launching meme tokens on Pump.fun and turning the price into a crab walk," the trader wrote in a message on September 4.

Solana ETF Anticipation Grows

However, one upcoming development that could serve as a strong catalyst for SOL's price is the growing anticipation for a Solana-based exchange-traded fund. Following Brazil's lead, another global jurisdiction approved the first Solana ETF on August 7.