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Solana price at risk: Can Pump.fun’s AMM pools stop a drop to $100?

Solana’s price is under intense bearish pressure, having dropped below $160 for the first time since November 2024.

The decline follows a broader crypto market correction, compounded by concerns over an imminent $2 billion token unlock from the FTX bankruptcy auction.

As speculation grows over whether Solana (SOL) could plunge to $100, all eyes are on PumpFun’s latest liquidity solution.

Source: CoinMarketCap

The launchpad, known for its role in the meme coin frenzy, is testing its own Automated Market Maker (AMM) liquidity pools.

But can this innovation stabilize Solana’s price, or is further downside inevitable?

PumpFun’s AMM aims to boost liquidity on Solana

PumpFun, a platform simplifying meme coin launches on Solana, is reportedly developing its own AMM liquidity pools, according to blockchain analyst Trenchdiver.

Unlike Solana’s native AMM, Raydium, this new liquidity system would allow seamless trading of meme coins directly on PumpFun without external decentralized exchanges (DEXs).

A beta version of PumpFun’s AMM is already live, featuring a swap interface enabling users to trade SOL against various meme coins.

If fully deployed, this feature could improve liquidity, accelerate meme coin trading, and boost PumpFun’s revenue streams.

The launchpad has already driven significant activity on Solana, and a successful AMM rollout could strengthen network demand, potentially providing some price support for SOL.

Despite the initiative’s potential, its impact on Solana’s broader price movement remains uncertain.

The upcoming FTX-related token unlocks and broader market sentiment still weigh heavily on SOL’s trajectory.

Solana price forecast: How low can SOL go?

Solana is currently priced at $159, marking a 6% decline in the past 24 hours and a staggering 35% drop over the last month.

This steep correction has raised fears that SOL may revisit its 2023 lows of $100, a key psychological level.

Crypto analyst Crypto_McKenna notes that Solana’s market structure is bearish after breaching support between $167 and $169.

McKenna

@Crypto_McKenna

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$SOL continues to look structurally bearish going into the March unlocks.

2:29 AM · Feb 24, 2025

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With weak buying support, analysts predict that SOL could fall further into the $112–$126 range.

If selling pressure intensifies, a decline to $100 is likely, with some projections suggesting a bottom near $79.

One of the biggest concerns fueling this bearish outlook is the upcoming unlock of 11.2 million SOL tokens from the FTX bankruptcy proceedings.

If recipients choose to sell these tokens rather than hold them, selling pressure could push the price even lower.

Negative sentiment has been exacerbated by a Bybit hacker laundering stolen funds through Solana meme coins, further unsettling investors.

Liquidation risks threaten further downside

Solana’s liquidation map reveals a high concentration of long positions between $120 and $160.

When long traders are forced to liquidate their positions, they must sell their holdings, adding more downward pressure to the price.

Data from Coinglass shows that Solana’s drop to $160 on February 24 triggered $21 million in long liquidations.

If these liquidations continue, it could accelerate the downturn, bringing SOL closer to the critical $100 level.

The ongoing market-wide uncertainty, coupled with FTX-related sell-offs, suggests that Solana may struggle to find strong support unless new demand emerges.

While PumpFun’s AMM pools may enhance liquidity and drive engagement within the Solana ecosystem, it remains unclear whether they can offset the broader bearish pressure.

Unless new catalysts emerge, SOL could remain vulnerable to deeper losses in the coming weeks.

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