Following a period of decline, there has been a noticeable resurgence in Solana [SOL] in the past month, marking a strong comeback for the altcoin.
Despite the recent upward movement, market sentiment has been positive, particularly after the selling spree by Pump Fun.
Pump Fun Offloads $6.68M SOL
Recent data from Lookonchain indicates that Pump Fun has sold an additional 40,000 SOL valued at $6.68 million, bringing their total sales to a substantial 500,000 SOL tokens, worth $78.7 million.
The continuous selling activity has sparked speculation about its potential impact on the wider Solana market. Concerns have been raised that these consistent liquidations might create short-term selling pressure, causing a decline in prices.
Impact on SOL’s Performance?
As anticipated, the market responded swiftly to the news, with SOL experiencing a modest 0.73% drop at the time of reporting, diverging from the general market trend.
Prior to this development, Solana had been on an upward trajectory, recording an 8.34% increase on weekly charts and a 14.60% surge on monthly charts, reaching a two-month peak of $168.
Although SOL saw a notable decline on daily charts, overall market sentiment remained optimistic.
This positive sentiment is reflected in the prevalence of long positions held by most traders.
According to data from Coinglass, the majority of Solana’s perpetual futures contracts are held by long accounts.
Long position holders currently account for 82.34% of the market, with short positions making up only 4.66%. This suggests that traders are predominantly bullish and expect prices to rise.
Furthermore, Solana’s Open Interest (OI) per exchange has surged in the past week, rising from a low of $705.3 million to $965.17 million.
This uptrend indicates that investors are not only initiating new positions but are also maintaining existing ones despite market conditions.
Further supporting this trend is the fact that OI has reached a three-month high of $3 billion.
In essence, despite Pump Fun’s ongoing increase in supply, the overall market sentiment remains bullish.
This is evidenced by the prevalence of long positions among investors and the growing open interest. Consequently, if these conditions persist, SOL is likely to target the next major resistance level at $185.