Forward Industries dumps $201M Solana (SOL), Price eyes $120

Key Takeaways

Why is Solana facing continued downside pressure? 

Forward Industries’ $201 million SOL transfer and technical breakdown below $155 has intensified bearish momentum.

What signals a potential shift in market sentiment for SOL? 

Rising accumulation and leveraged positions near $128.9 and $140.5 suggest traders are preparing for a rebound.

Solana [SOL], the world’s sixth-largest cryptocurrency by market cap, is poised to continue its prolonged downside momentum. 

Over the past two months, SOL has been in a downtrend, losing nearly 50% of its value. Recent activity by the Solana Digital Asset Treasury (DAT) firm Forward Industries has further strengthened the asset’s bearish momentum.

Forward Industries dumped $201M of SOL 

According to the analytics platform Onchain Lens, Forward Industries, the largest holder of SOL, has sent over 1.44 million tokens worth $201 million to Coinbase Prime, raising concerns of a potential price crash.

Source: X/OnchainLens

According to the report, Forward Industries began acquiring SOL through a PIPE (Private Investment in Public Equity) deal and has since executed transactions totaling $1.65 billion. As of now, the firm holds 6.9 million SOL, about 1.119% of the total supply.

In a recent statement, the team said,

“We remain focused on our goal of increasing SOL per share.”

It remains unclear whether the recent $201 million transfer was an actual sell-off or a routine transaction. Nonetheless, the move had a noticeable impact on SOL’s price, which has since shown signs of recovery.

SOL’s price momentum 

According to CoinMarketCap data, SOL was trading at $137.90, experiencing a 2.95% decline over the past 24 hours, but it also reached a low of $128 following a $201 million SOL deposit.

At the time of writing, investor and trader interest in the asset was strong, as reflected by a 79% surge in trading volume to $9.35 billion.

AMBCrypto’s technical analysis reveals that SOL is in a downtrend and is poised to continue in the coming days.

On the daily chart, the asset has broken down a key support level at $155, followed by a small consolidation, which partially confirms the downside move.

Source: Trading View

Based on current price action, if SOL remains below the consolidation zone, it could see another price dip of 16%, potentially reaching the $120 level.

However, this downtrend could only end if SOL reclaims the $160 level. If it does, there is a high probability that SOL could continue its uptrend.

SOL’s Chaikin Money Flow (CMF) value reached -0.18, indicating sustained selling pressure and weak capital inflows, as sellers continue to dominate the market.

Meanwhile, the Supertrend indicator remained in the red above the asset’s price, signaling that SOL is in a downtrend with strong selling pressure.

Derivative tool reveals shift in market sentiment 

Amid market uncertainty, investors and traders appear to be taking advantage of the current sentiment by accumulating SOL and placing bets at lower prices.

According to the derivatives tool CoinGlass, exchanges across the crypto landscape have recorded an outflow of $39 million worth of SOL over the past 48 hours, indicating potential accumulation.

Source: CoinGlass

The derivatives tool CoinGlass reveals that SOL has two key levels where traders are over-leveraged: $128.9 on the lower side and $140.5 on the upper side.

At these levels, traders have built $298.39 million worth of long positions and $134.46 million worth of short positions, indicating a shift in market sentiment.