Fear Sparks as Solana's $219 Million Institutional Loss Raises Concerns

Fear Sparks as Solana's $219 Million Institutional Loss Raises Concerns – Future Movement to $170 Relies on This

Solana has recently faced significant institutional losses, most notably with Forward Industries transferring 1.727 million SOL valued at $219.32 million, while holding a total of 6.834 million SOL at a 45% unrealized loss. However, whale purchasing activity remains robust alongside a rise in active addresses, providing support to Solana's price. The key price level to watch is around $170, which could influence Solana's future trajectory.

Key Takeaways

Forward Industries transferred 1.727 million SOL, taking a $219 million loss while retaining significant holdings.
Positive signals include whale buying, an increase in Active Addresses by 21%, and demand support near $130, indicating potential for short-term recovery.
The price level around $170 is critical for Solana, as breaking above it could lead to further upward movement.

Solana SOL

Major Transfers Cause Institutional Concerns

Recently, Forward Industries transferred 1.727 million SOL, valued at $219.32 million, to wallet 552ptg, making it one of the largest Solana transactions in this quarter, according to Lookonchain. The firm has accumulated a total of 6.834 million SOL at a hefty cost of $868 million, averaging around $232.08 per SOL. This has left them with an unrealized loss of approximately 45%, equating to around $718 million underwater at the time of the transfer. Despite these losses, Forward Industries still holds nearly 5 million SOL, suggesting they are maintaining a long-term bullish outlook even as sentiment fluctuates with institutional activity.

Solana Forward Industries Transfer

Institutional Activity Alleviated by Whale Purchases

During the same period, large Solana whales made strategic moves. While institutional buying weakened, there was a notable increase in large Spot purchases. According to CryptoQuant’s Spot Average Order Size, significant buying activity has persisted at current price levels, indicating sustained whale interest even amidst broader market declines.

Solana Whale Activity

Additionally, Solana's active monthly addresses rose to 45.8 million, marking a 21% increase over the past month. This rise signifies ongoing network engagement among traders, which provides a counterbalance to selling pressures from institutions.

SOL Active Addresses

Price Stability and Resistance Levels

Solana recently rebounded from a critical daily demand zone near $130, which provided stability following significant sell-offs. However, the cryptocurrency faces continued overhead pressure. The next resistance level to monitor is approximately $170, which is depicted on the chart as the forthcoming key hurdle.

Solana Price Analysis

This level is also significant as it marks previous instability and aligns with failed retests in early November. A breakthrough above the $170 mark could shift the market momentum towards the $190–$210 range, where supply may become thicker.

Analyzing these factors provides a clearer picture of the current trends in Solana and highlights the potential pathways for its price movement.