Forward Industries has recorded a massive loss of $245 million on its Solana crypto investment in a latest news update. The firm recently bought over 6.8 million SOL at $232 each.
With Solana trading near $194 this week, the strategy to build a major Solana treasury comes under pressure as prices fall and futures activity surges.
Solana News: Forward Industries’ Big Bet Turns Risky
Forward Industries has seen its large Solana investment lose value quickly. The company bought 6,822,000 SOL at an average of $232 per coin earlier this week.
The deal cost about $1.58 billion with a plan to build what its leaders called the world’s largest Solana treasury company.
In Solana news today, SOL price is close to $194. This means the value of the firm’s holdings has dropped by about $245 million.
The sharp fall has raised questions about the company’s strategy. It also shows how fast conditions can change in the digital asset market.
Over the past week, Solana’s price has fallen more than 18%. Among the top-20 cryptocurrencies, this is one of the steepest drops.
The decline has been linked to heavy activity in the futures market. Open interest, which measures outstanding futures contracts, has reached 71.8 million SOL. This equals about $14.5 billion.
Analysts say the rise in open interest shows that traders are taking bigger positions.
Funding rates have moved back into positive territory, showing that most traders are betting on the price to rise.
However, because the market is still under pressure, this may set up the risk of a long squeeze.
A long squeeze happens when a price drop forces many traders to close positions, pushing the price even lower.
In further solana news, technical charts also suggest more risk. SOL price broke down from a rising wedge, a pattern often linked to reversals.
The price has slipped below the middle support line of the Bollinger Bands at $226 and now sits near the lower band at $193.
If the price closes below this level, the next support could be in the $180 to $170 range. A deeper fall toward $160 is possible if selling continues.
Could SOL Price Be Oversold?
Even with the decline, some traders believe Solana might be oversold. The Relative Strength Index, or RSI, is now around 36.
This is close to the oversold level of 30. When assets reach this range, they sometimes see a rebound.
A first sign of recovery would be if SOL price can move back into the $200 to $210 range.
If the price rises above $226, analysts would see that as a stronger sign of stability. In that case, $259 would become the next major target.
For now, the momentum is still weak with the Moving Average Convergence Divergence, or MACD, showing a bearish crossover.
This means downward pressure is still strong. Traders say the coming days will show whether the Solana price can hold above $190 or if it will slide further.
Solana News: Stablecoin Growth Strengthens the Network
It is important to add that while the Solana price has dropped, the use of stablecoins on its network is growing.
Market data shows that the total stablecoin market cap on Solana has reached $13.446 billion.
That is an increase of $1.039 billion in just seven days, which equals a growth of 8.38%.
USDC leads with a 69.66% share of the market. The rise in stablecoin activity highlights that many users are still active on the Solana network.
Even with the SOL price under pressure, stablecoin demand shows another side of network strength.
Market watchers remains optimistic that this growth could support the long term outlook of Solana price.
For now, Forward Industries faces a major test of its treasury plan, as its $1.58 billion investment continues to face heavy losses.