Solana’s SOL Drops Below Key Level as Market Downturn Intensifies
Solana’s SOL faced renewed pressure on Monday as the broader crypto market sell-off pushed its price down by 8% to $124, marking its first dip below the realized price of $134 since May 2022.
The realized price, which reflects the average cost basis of all SOL tokens last moved, is a crucial indicator of market sentiment. With current prices now below this level, the average SOL holder is in a loss position—a bearish signal that could lead to increased selling pressure and potential capitulation.
The decline coincides with an ongoing debate among Solana validators over proposal SIMD-0228, which aims to reduce the network’s annual inflation rate from 4.7% to approximately 1.5% over time.
From a technical perspective, SOL’s price is trending within a descending channel. Resistance now sits between $130 and the former support level of $134, while key support zones are identified at $120 and $115. While the overall trend remains bearish, a breakout above $128 with strong volume could trigger a recovery toward $134 as dip buyers step in.
