Blockchain analytics firm Lookonchain has raised concerns about large-scale Solana (SOL) transactions that could indicate potential market manipulation. According to the firm, pump.fun, a meme coin generator on Solana, may have quietly offloaded 65,284 SOL (worth $8.22 million). This was executed through a deposit to crypto exchange Kraken, followed by withdrawals from three newly created wallets, which immediately sold the same amount at $126 per SOL.
Looks like #PumpFun may have quietly sold 65,284 $SOL($8.22M).
— Lookonchain (@lookonchain) April 1, 2025
Today, they deposited 65,284 $SOL to #Kraken. Shortly after, 3 newly created wallets withdrew the exact amount and sold it for 8.22M $USDC at $126.
On March 25, they deposited 104,120 $SOL($14.97M) to #Kraken, then… pic.twitter.com/72mGfl15pe
A similar transaction pattern was observed on March 25, when 104,120 SOL (valued at $14.97 million) was deposited to Kraken, withdrawn, and subsequently sold at $144. Such high-volume selling raises concerns over its impact on SOL’s price trajectory.
Solana’s Price Outlook: Key Levels to Watch
Despite these large-scale sales, Solana has shown resilience. As of now, SOL is trading at $127.49, reflecting a 2.5% gain in the last 24 hours. Trading volume has surged 36% to $3.12 billion, indicating heightened activity, according to CoinMarketCap.
Technical indicators suggest Solana is approaching a crucial resistance at the 20-day EMA of $132.51. A breakout above this level could trigger a bullish rally, while failure to breach it might result in further consolidation. The Relative Strength Index (RSI) stands at 43.60, suggesting a balance between bullish and bearish forces. Furthermore, SOL is currently testing the middle Bollinger Band resistance at $130.82. A successful breakout could see the altcoin push toward $142.56.
Solana’s Network Strength Amid Uncertainty
Despite short-term volatility, Solana’s blockchain remains strong. Over the past week, Solana ranked second among blockchains in fee revenue, earning $6.76 million, trailing only Tron ($11.75 million) and slightly ahead of BNB Chain ($6.71 million). Moreover, Real Economic Value (REV), a metric tracking user-generated value, rose 54% to $18.5 million, highlighting continued network growth.
Tron, Solana, and BNB Chain raked in the highest fees this week:
— Nansen 🧭 (@nansen_ai) April 1, 2025
🥇 @trondao – $11.75M
🥈 @solana – $6.76M
🥉 @BNBChain – $6.71M
Different chains, same hustle. pic.twitter.com/RIpUwMAjtH
Solana ETFs See Tepid Institutional Interest
Institutional investment in Solana has been sluggish despite the launch of two Solana futures ETFs by Volatility Shares on March 20. The ETFs—SOLZ and SOLT—recorded just $1 million in trading volume in their first days. In contrast, Bitcoin ETFs like BlackRock’s IBIT saw nearly 80 times more volume upon launch.
Bloomberg ETF analyst Eric Balchunas noted that institutional demand tends to diminish as investment products move further from Bitcoin, explaining the muted response to Solana’s ETF debut.
The new Solana futures ETF hasn't done much, a million in volume first few days is decent for normal ETF but nothing vs btc, about 80x less than $BITO's first few days or $IBIT's. Like we've said, the further you get away from btc the less asset there will be (which rhymes btw) pic.twitter.com/OqoIpzdeel
— Eric Balchunas (@EricBalchunas) March 31, 2025
While Solana’s on-chain activity and network fundamentals remain strong, large-scale SOL offloading and subdued institutional interest pose challenges. Traders should closely monitor resistance levels and key technical indicators to gauge the altcoin’s next move in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Ethereum Overtakes Solana in DEX Trading Volume for the First Time Since 2024
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