Solana’s SOL Drops Below $134 Realized Price as Sell-Off Deepens

Solana’s SOL extended its decline on Monday, sliding 8% to $124 amid a broader crypto market downturn. This marks the first time since May 2022 that SOL has fallen below its realized price of $134, a key metric that tracks the average cost basis of all tokens last moved.

A drop below the realized price often signals that the average holder is at a loss, which can trigger further selling pressure as investors panic or capitulate.

The decline also coincides with an ongoing debate among Solana validators regarding SIMD-0228, a proposal that could significantly reduce the network’s annual inflation rate from 4.7% to approximately 1.5%.

From a technical standpoint, SOL remains in a bearish descending channel, with resistance now sitting between $130 and the former support of $134, while key downside levels include $120 and $115. If buyers manage to push the price above $128 with volume, a recovery toward $134 could be possible.