Crypto: The Price Of Solana Rebounds Above $200 After A Massive Sell-off Of SOL

The price of Solana (SOL) is showing a spectacular recovery of 10% following a significant transaction of 55 million dollars made by the Pump.fun platform to the Kraken exchange. This rebound occurs in a context of high volatility for the cryptocurrency.

A massive sale that triggers an unexpected rebound

On January 1st at 5 PM UTC, Pump.fun made a double transfer of SOL to Kraken totaling 55 million dollars. A first payment of 22.8 million dollars was made at 4:37 PM UTC, followed by a second of 32.7 million dollars at 5:45 PM UTC.

Contrary to expectations, this massive sale triggered a rebound in the price which went from $189 to over $200 in less than an hour.

This operation is part of a series of significant movements by Pump.fun, which has already sold over 303 million dollars of SOL on Kraken since the beginning of 2024. Despite these significant selling pressures, the crypto market demonstrates remarkable resilience.

The limited impact of these massive sales on the price suggests a strong underlying demand for Solana, possibly fueled by institutional investors.

Bullish prospects driven by the Solana ETF

Optimism surrounding Solana is growing with the increasing probability of approval for a spot ETF in the United States. According to Polymarket, the chances of validation are now at 76%, an indicator closely followed by investors.

Major asset managers like VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital are competing to launch the first Solana ETFs. The SEC is expected to make its first decisions by January 25th, with a particular deadline for Grayscale set for January 23rd.

The precedent set by the approval of the first Solana ETF in Brazil last August strengthens the positive outlook. Bitwise has also set an ambitious target of $750 for SOL, reflecting institutional confidence in the potential of this blockchain.

Solana’s ability to maintain its valuation despite the massive sales, combined with the prospects for ETF approval, suggests significant bullish potential for 2024.