Solana Price News: Forward Industries Has Lost $600M Of Their SOL Investment

Solana (SOL) has faced a brutal drawdown in the past two months or so, and one company bought at the very top of this cycle.

Forward Industries (FORD), the largest digital asset treasury holding SOL, is currently sitting on a painful $600 million loss according to public records.

Their initial investment, consisting of $1.6 billion worth of the token, is currently valued at just $1 billion, almost three months after the company announced it.

They were probably some level of volatility, but nobody is prepared to deal with that kind of massive pain in such a short period.

This calculation does not take into account any staking rewards the DAT could have accrued during that period, or potential hedges like put options on their SOL holdings that they bought to protect their investment from tail risks like this.

Forward Industries Affirmed Its Commitment to Hold SOL

In a press release published on December 2, the company reaffirmed its commitment to maintain its Solana stash untouched and claimed to be generating an annual percentage yield (APY) ranging from 6.8% to 7% by staking its tokens.

Forward Industries Investor Update – Source: Business Wire

Since FORD did not use any debt to finance its SOL purchases, the company is not currently facing any liquidation risks, like perhaps Michael Saylor’s Strategy might be if the price keeps dropping.

Despite the latest decline that SOL has experienced, Forward Industries has booked a 32.7% gain in the past 6 months, and its market capitalization currently sits at $710 million – around $100 million above the theoretical value of its SOL stash.

Their massive SOL reserves could provide a long-term cushion to the token, along with those of other DATs. According to data from CoinGecko, these entities currently hold 2.9% of Solana’s circulating market cap.

Their commitment not to sell the token under any circumstances also gives the network a credibility boost that could play in its favor while this wave of negative momentum fades.

SOL Needs to Rise Past $150 to Reverse Its Downtrend

The daily chart for SOL shows that the token bounced strongly off the $130 area and quickly retested the $145 resistance.

SOL/USD Daily Chart (Binance) – Source: TradingView

The most critical area to watch for the time being would be $, as this is a pivotal level that would confirm a trend reversal if the price surpasses it. SOL’s price structure is still bearish unless that breakout occurs.

If the price rejects a move above this level, the downtrend will likely resume, and SOL could drop even further, possibly to the low 100s (red line scenario).

Meanwhile, if the price breaks above that mark, the green line scenario could unfold. This would likely result in a massive short squeeze that could push SOL back to $200 in a few weeks.

The market is leaning heavily to the bearish end right now based on where sentiment readings stand. Hence, an explosive move to the upside could catch bears off guard and prompt an explosive move back to where SOL was a couple of months ago.

The “W” shaped price action we have seen in the past few days supports a bullish outlook, but a buy signal has not been confirmed yet.

The Relative Strength Index (RSI) is moving in the right direction as it climbed above the 14-day moving average, but it has not yet climbed above the mid-line.

Momentum is rising, but it is still too early to tell if this will lead to a full-blown recovery, especially as the last FOMC meeting of the year will take place in just 6 days.