Solana’s SOL Drops Below Critical Price Level for the First Time in Three Years

SOL's realized price—the average cost basis of all tokens last moved—has fallen below $134 for the first time since May 2022.

Key Points to Know:

• Solana's SOL dropped 8% to $124, slipping below its realized price of $134 for the first time since May 2022.
• The decline aligns with an ongoing debate among Solana validators over a proposal to lower the network’s annual inflation rate from 4.7% to around 1.5%.
• This bearish movement indicates that the average SOL holder is now at a loss, which could lead to panic selling. However, a potential rebound to $134 remains possible if the $120 support holds and SOL breaks above $128 with strong volume.

Solana’s SOL faced uncertainty as Monday’s widespread crypto market downturn caused the token of the high-speed, low-cost blockchain to plunge by 8% to $124.

According to Glassnode data, this marks the first time since May 2022 that SOL has fallen below its realized price of $134. The realized price represents the average cost basis of all coins last moved, and with the current drop, the average holder is now at a loss—a bearish signal that could lead to panic selling or capitulation.

The decline coincides with an ongoing debate among Solana’s validators over a proposal called SIMD-0228, which aims to reduce the network’s annual inflation rate by 80%, lowering it from 4.7% to approximately 1.5% over time.

Unlike the market price, which varies with exchange trades, the realized price serves as a cost-basis benchmark.

Currently, price action is forming a descending channel, with resistance at $134—previously a support level—and $130, while key support levels sit at $120 and $115. The trend remains bearish, but if $120 holds and $128 breaks with strong volume, a rebound toward $134 could be fueled by dip buyers.