Solana’s SOL Dips Below Key Support as Market Pressures Mount
Solana’s SOL faced renewed selling pressure on Monday, plunging 8% to $124 amid a broader crypto market slump. This marks the first time since May 2022 that SOL has dropped below its realized price of $134, an important metric that represents the average cost basis of all tokens last moved.
With SOL trading under this threshold, the average holder is now in a loss position—a bearish development that could lead to increased selling pressure as traders seek to minimize losses.
The downturn comes as Solana validators discuss SIMD-0228, a proposal that could slash the blockchain’s annual inflation rate from 4.7% to approximately 1.5%, a move that may impact long-term supply and staking rewards.
From a technical perspective, SOL is trading within a descending channel, with resistance forming around $130 and the former support of $134, while key downside levels are at $120 and $115. If buyers step in and push the price above $128 with strong momentum, a potential recovery toward $134 could be on the table.
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