Forward Industries Faces $245M Loss on $1.34B Solana Bet

Forward Industries Faces $245M Loss After Solana Price Drop

Forward Industries is staring down a paper loss of nearly $245 million after its $1.34 billion treasury allocation into Solana (SOL) price dipped with the latest market downturn. The company accumulated 6.8 million SOL tokens with an average price of $232, but its bet is at stake with the steep decline in SOL price. 

Even though this move reflects the belief in the long-term potential of the top altcoin, it highlights the risks posed by increased institutional adoption in the crypto markets.

Additionally, SOL price has been oversold, dropping to lows of about $192 this month after peaking at around $250 earlier. The 4-hour chart shows a defined bearish structure with successive lower highs and lower lows. Sellers maintained control as price failed to reclaim the $220-$230 resistance zone.

SOLUSD 4H CHART | SOURCE: TradingView

Currently, SOL is holding near the $190–$195 level, which has emerged as critical short-term support. Should this level break, the next downside targets lie at $180 and $170.

Furthermore, momentum indicators confirm the weakness. The MACD remains negative, with the MACD line diverging below the signal line, signaling persistent bearish momentum. Meanwhile, histogram bars showed that sellers are firmly in command. 

However, oversold conditions raise the chance of a short-lived bounce if buyers defend $190-$195. Any rebound would initially aim at $205-$210, although a long-term bullish turnaround would need to regain the $220 the. Traders are cautious and are expecting to see both volume and momentum before entering into fresh long positions.

SOL Faces Volatility as Institutional Flows Shift

Further, the sell-off follows a greater weakness in the large-cap altcoins. Ethereum, also, has not been immune to outflows with traders shifting to stablecoins, and Solana price becoming the victim of high-beta volatility. However, the ecosystem at Solana is growing, with new DeFi interactions and NFT marketplace operations facilitating long-term applications. 

SOURCE: X

Moreover, treasury allocation at Forward Industries is an indication that they are confident about the scaling of the top altcoin price, yet timing has exposed them to a short-term crash in the market.

Support Faces Key Test

Besides that, the theme of institutional exposure is increasing as treasuries are starting to hold crypto among other traditional assets. Solana price remains attractive for developers, with low fees and high settlement speed. Also, on-chain liquidity is getting better, with staking offering yield to long-term investors. These factors are the basis for long-term demand despite the volatility of market cycles.

In the meantime, the next few sessions will tell whether Solana will be able to hold its $190 support or continue to slide further to the underlying support at $170. A decisive fall lower would worsen the losses for Forward Industries, and a recovery above $205 will trigger new hopes. The most vital level would be $220, where a reclaim of the level signals the restoration of the bullish momentum.