$201M SOL Transfer Puts Pressure on Solana: Will It Drop to $120?

Forward Industries has made headlines with its massive $201 million transfer of Solana (SOL) tokens, contributing to a bearish outlook for the cryptocurrency. As SOL trends downward, traders are shifting their strategies in anticipation of a potential rebound as accumulation rises near crucial support levels.

Key Takeaways

A $201 million SOL transfer by Forward Industries has increased bearish sentiment around the cryptocurrency.
Traders are accumulating SOL around the $128.9 and $140.5 mark, suggesting they are preparing for a potential rebound.
Solana (SOL), currently the sixth-largest cryptocurrency by market capitalization, is facing continued downward pressure, having lost nearly 50% of its value in the past two months.

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

Forward Industries Makes a Major Move with $201M in SOL

As reported by analytics platform Onchain Lens, Forward Industries, the largest holder of Solana, transferred over 1.44 million SOL tokens—valued at approximately $201 million—to Coinbase Prime, raising concerns about a possible price decline.

Forward Industries Dump $201 Million Solana (SOL)

According to the report, Forward Industries initially acquired SOL through a Private Investment in Public Equity (PIPE) deal, with total transactions reaching $1.65 billion to date. Currently, the firm retains approximately 6.9 million SOL, representing about 1.119% of the total supply.

In a recent update, the company stated, "We remain focused on our goal of increasing SOL per share," though it is still uncertain if the $201 million transaction was a true sell-off or simply part of routine operations. Regardless, the transaction has affected SOL’s price, which has recently shown some signs of recovery.

Current Price Trends of SOL

According to CoinMarketCap, Solana (SOL) is currently trading at $137.90, down by 2.95% in the last 24 hours, and it hit a low of $128 following the large transfer. Strong interest from both investors and traders is evident, as shown by a 79% increase in trading volume, reaching $9.35 billion.

AMBCrypto’s analysis suggests that SOL is still in a downward trend, expected to persist in the coming days. The daily charts show that SOL has breached a critical support level at $155 and experienced minor consolidation, reinforcing the bearish outlook.

Solana (SOL) price action

Analysts suggest that if SOL remains below the consolidation zone, it may face another decline of around 16%, potentially dropping to the $120 mark. However, if SOL manages to reclaim the $160 threshold, the likelihood of shifting to an upward trend could increase significantly.

Currently, SOL's Chaikin Money Flow (CMF) is at -0.18, indicating ongoing selling pressure and weak capital inflows, as sellers continue to dominate the market. The Supertrend indicator also remains in the red, confirming that SOL is under significant selling pressure.

Market Sentiment Shifts Amid Uncertainty

In light of the ongoing market uncertainties, it appears that investors are seizing the opportunity to gather SOL at lower price points.

According to the derivatives tool CoinGlass, crypto exchanges have experienced an outflow of $39 million worth of SOL in the past 48 hours, signaling potential accumulation.

SOL Spot Inflow/Outflow

CoinGlass further reveals that SOL has two key levels where traders are over-leveraged: $128.9 on the lower end and $140.5 on the upper end. This indicates that traders are holding $298.39 million worth of long positions and $134.46 million worth of short positions, reflecting a notable shift in market sentiment.