Solana’s SOL found itself in troubled waters as Monday’s widespread decline in the cryptocurrency market caused its value to plummet as much as 8%, reaching $124.
This marks the first time since May 2022 that the price has dipped below the realized value of $134. According to data, the realized price represents the average acquisition cost of all coins that have been transferred, indicating that the typical holder is now at a loss. This situation can be viewed as a bearish sign that might provoke panic selling or capitulation.
The price drop occurs amid discussions among Solana’s validators regarding a proposal, known as SIMD-0228, which aims to reduce the network’s annual inflation rate from 4.7% to approximately 1.5% over time.
While the market price varies with trading activity on exchanges, the realized price serves as a stable cost-basis reference point.
The current price movement is forming a descending channel, with resistance levels between $134—previously a support area—and $130, while support can be found at $120 and $115. The trend leans bearish, but should $120 hold and a breakout occur above $128 with significant volume, a recovery to $134 could be anticipated, potentially fueled by dip buyers.