Solana’s SOL Dips Below Key $134 Mark for First Time in Three Years Amid Market Slide

Solana’s native cryptocurrency, SOL, took a significant hit this week, dropping as much as 8% to $124 during a widespread decline across the crypto market on Monday. This marks the first time since May 2022 that SOL has fallen below its realized price of $134—a critical benchmark reflecting the average cost at which current holders acquired their coins, according to data from Glassnode.

The realized price serves as a financial anchor for investors, distinct from the market price that shifts with trading activity on exchanges. When the market price dips below this level, it signals that the average SOL holder is now “underwater,” meaning their holdings are worth less than what they paid. Analysts note this can spark unease, potentially leading to panic selling or a broader wave of capitulation among investors.

The timing of the drop coincides with ongoing discussions within the Solana community. Validators—the individuals and entities maintaining the blockchain—are debating a proposal called SIMD-0228. If approved, it would sharply reduce Solana’s annual inflation rate from 4.7% to about 1.5% over time. This high-speed, low-cost blockchain has long been praised for its efficiency, but the proposed change aims to address concerns about the token’s supply growth and long-term value.

From a technical perspective, SOL’s price movement has formed what experts call a “descending channel.” Resistance levels—where selling pressure tends to kick in—now sit between $130 and $134, a range that once acted as support. On the downside, support levels at $120 and $115 could cushion further declines. While the trend leans bearish, a glimmer of hope remains: if $120 holds firm and SOL breaks above $128 with strong trading volume, dip buyers might push the price back toward $134.

For now, Solana enthusiasts and investors alike are watching closely. The combination of market dynamics, technical patterns, and the inflation debate underscores the challenges facing one of the crypto world’s most prominent players. Whether SOL steadies itself or slides further, its next moves will likely ripple across the broader blockchain ecosystem.