- Solana fell 10% despite DeFi Dev Corp’s plan to raise $5 billion to increase its SOL holdings.
- Technical indicators show bearish pressure as SOL tests key support near $142.
Solana (SOL) has dropped 10% in the past 24 hours, even after Nasdaq-listed DeFi Development Corporation (DeFi Dev Corp) unveiled plans to raise $5 billion to increase its SOL holdings. This surprising decline highlights growing investor concerns, despite what appears to be a bullish development on paper.
DeFi Dev Corp’s $5B Equity Line Targets Solana
DeFi Dev Corp aims to raise up to $5 billion via an equity line of credit (ELOC) with RK Capital Management. This strategic move allows the firm to sell shares gradually, when market conditions are favorable, rather than at fixed pricing—providing greater flexibility. The proceeds will go directly into purchasing SOL as part of the company’s aggressive accumulation strategy.
This comes after the withdrawal of a previous $1 billion filing with the U.S. Securities and Exchange Commission (SEC). The earlier plan was dropped because the SEC found the company ineligible due to a missing internal control report.
Strategic Staking and Integration on Solana
In addition to the funding plan, DeFi Dev Corp is integrating its liquid staking token, dfdvSOL, into RateX, a Solana-based yield trading platform. This integration opens up yield farming, fixed-yield products, and trading incentives for holders of dfdvSOL, making it a potentially lucrative token within the Solana DeFi ecosystem.
The company has already accumulated 609,190 SOL—valued at $93 million—across 11 purchases since April, reflecting strong long-term conviction in Solana’s potential.
Market Reaction Remains Bearish
Despite these seemingly positive developments, Solana’s price has dropped below the critical 50-day Simple Moving Average (SMA). The broader crypto market is also struggling, with many altcoins facing similar double-digit losses.
SOL is currently testing the $142 support level, which is bolstered by the 100-day SMA. Technical indicators such as the Relative Strength Index (RSI) and Stochastic Oscillator both point to increased bearish pressure, suggesting that prices could slide further if support breaks.
Even as DeFi Dev Corp takes bold steps to support Solana through strategic funding and integrations, market sentiment appears focused on broader macro weakness. Unless SOL holds its key support levels, the token could see further downside despite institutional-level backing.
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