Forward Industries’ $245M Solana Loss as SOL Price Dips

Published: 2025-09-26 11:44:57 |

Forward Industries is facing an unrealized loss of $245 million after acquiring 6.822 million SOL at an average price of $232. The firm spent about $1.58 billion to build what it called “the world’s largest Solana treasury,” but SOL has plunged over 18% in a week to around $194. This drop ranks among the steepest in the top-20 cryptocurrencies for 2025. Solana futures markets have seen record open interest of 71.8 million SOL (about $14.5 billion). Funding rates turned positive at 0.0043%, highlighting a dominance of leveraged long positions. Such an imbalance raises the risk of a long squeeze that could trigger accelerated losses. Technically, SOL broke down from a rising wedge pattern, slipping below the mid-Bollinger Band near $226 and now testing support at $193. A decisive close under $193 could expose the $180–$170 range, with $160 as a deeper target. On the upside, reclaiming $200–$210 is crucial, while a move above $226 and the upper wedge resistance near $259 would signal renewed bullish momentum. In other news, Snorter Bot (SNORT) has raised $4.1 million in its presale. This Telegram-based Solana trading assistant offers 115% staking APY and aims to simplify on-chain token discovery and management for traders.

Bearish

Forward Industries’ sizable unrealized loss on its Solana holdings undermines confidence in institutional demand for SOL. An 18% weekly price drop—one of the steepest among top-20 tokens—combined with record open interest and a dominance of leveraged longs, heightens the risk of a cascading long squeeze. Technically, SOL’s breakdown from a rising wedge and failure to hold key supports around $193 suggest further downside, echoing past events where heavy long positioning on assets like Bitcoin led to sharp corrections (e.g., 2021 BTC longs squeeze). In the short term, traders are likely to remain cautious, potentially driving volatility and downward pressure. Over the longer term, recovery hinges on reclaiming $200–$210 and reducing open interest to rebalance funding rates. Until then, the outlook stays broadly bearish.