With the market struggling to regain bullish traction, Solana continues to trend downward, now hovering around the $130 price level. During this sharp pullback in SOL’s price, there has been a notable selling spree among investors, which seems to have migrated to those held in treasury reserves.
Ongoing Sell-Off Extends Into Solana Treasuries
After closing on a negative note on Monday, Solana’s ongoing bearish performance has expanded into another day. At the same time, a surprising shift in institutional sentiment and action has emerged concerning the thriving SOL treasuries narrative.
As the market wanes, one of Solana’s key treasury-backed companies has started to dump portions of its SOL holdings. OxNobler, a DeFi researcher and crypto investor, shared this change in sentiment, which is stirring fresh debate regarding the altcoin’s outlook in the short term.
Forward Industries, the largest SOL treasury company in the sector, is currently carrying out this renewed selling activity. The move comes at a time when Solana has been experiencing increased institutional attention and strong on-chain activity, making the decision to sell unexpected and should be closely monitored.
According to the researcher, Forward Industries has begun selling its over 6.8 million SOL holdings valued at a staggering $1.65 billion. OxNobler highlighted that the leading treasury company acquired SOL just 2 months ago. However, the firm is now selling off its holdings at a massive loss as the price of SOL keeps dropping.
Following this move to sell, speculations are whether this action is a strategic repositioning in the face of market volatility or a standard treasury rebalance. Such a sale from institutional investors is likely to inject a new layer of complexity into Solana’s narrative and its price trajectory in the weeks ahead.
A Hub For Seasoned Crypto Engineers
While large corporations may be dumping SOL, Vibhu, the mid-tier manager at the Solana Foundation, advocates buying the leading altcoin, predicting it could rise to the $1,000 price mark. The manager’s conviction is fueled by the network’s growing recognition and adoption by developers.
According to Vibhu, SOL is the epicenter of the most gifted network engineers, DeFi and consumer founders, and creatives in the cryptocurrency space. In addition, the only decentralized, scaled network that covers consumer goods, institutional products, and everything in between is Solana.
Vibhu calms that SOL has the best integration with onramps, exchanges, neobanks, and brokerages aside from Ethereum and Bitcoin. Unlike ETH and BTC, the network’s strategic value is based on driving unchain usage and revenues, a narrative that registers with everyday investors.
This year has been remarkable for SOL, achieving multiple milestones, which is expected to be more obvious in the upcoming months and years. Presently, Solana is half the age of Ethereum, but has the same or higher level of mindshare across the board; in other words, the slope is steeper. “There are product categories in which Solana is currently behind, and it will not remain that way forever,” Vibhu stated.
Featured image from Pxfuel, chart from Tradingview.com
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