Solana’s SOL Faces Challenges Amid Market Drop

Solana’s SOL entered murky waters as Monday’s broad crypto-market drop sent the token of the high-speed, low-cost blockchain diving as much as 8% to $124.

This marks the first time SOL has dipped below the realized price of $134 since May 2022, according to Glassnode data. The realized price represents the average cost basis of all coins last moved, indicating that the average holder is currently underwater. This bears a negative signal that could trigger panic selling or capitulation.

The decline coincides with discussions among Solana’s validators regarding a proposal known as SIMD-0228, which may reduce the network’s 4.7% annual inflation rate by 80% to approximately 1.5% over time.

> #Solana just plunged below its Realized Price for the first time in nearly 3 years. Currently, $SOL price is $124 – about 8% below the realized price of $134: Tweet link
> — glassnode (@glassnode) March 11, 2025

Unlike market price, which fluctuates with exchange trades, realized price acts as a cost-basis anchor.

The price action shows a descending channel, with resistance between $134, previously a support level, and $130. Support is noted at $120 and $115. The trend remains bearish, but if $120 holds and $128 breaks with volume, a rebound to $134 could be possible, driven by dip buyers.