Solana's SOL falls below key price threshold for first time in three years
The token's realized price, the average value of all recently moved coins, fell below $134 for the first time since May 2022.
Posted by Shaurya Malwa | Edited by: Sheldon Reback Updated: March 11, 2025 12:56 UTC Published: March 11, 2025 12:13 UTC
Key points:
- Solana shares fell 8% to $124, falling below the $134 realized price for the first time since May 2022.
- The decline comes amid discussions among Solana validators about a proposal that would reduce the network's annual inflation rate from 4.7% to 1.5%.
- The bearish sentiment suggests that the average SOL holder is in the red, which could trigger a panic sell-off, but a bounce to $134 is possible if support at $120 holds and $128 is broken on volume.
Solana's SOL has found itself in a tough spot as the cryptocurrency market saw a significant downturn on Monday, sending the high-speed and accessible blockchain token's value down 8% to $124.
This is below the realized price of $134 for the first time since May 2022, according to Glassnode data. The realized price is the average value of all recently moved coins, and the current reading means the average holder is at a loss, a bearish signal that could trigger a panic sell-off or capitulation.
The decline comes as Solana validators discuss a proposal known as SIMD-0228 that could significantly reduce the network's annual inflation rate of 4.7% to around 1.5%.
#Solana just dropped below its Realized Price for the first time in almost 3 years. $SOL is currently trading at $124 — about 8% below its Realized Price of $134: https://t.co/df8C00CqlB pic.twitter.com/zM6lKtVfGb
— glassnode (@glassnode) March 11, 2025
Unlike the market price, which fluctuates based on exchange trades, the realized price is a cost-based starting point.
The price action is forming a descending channel with resistance between $134, previously acting as a support level, and $130, as well as support at $120 and $115. The trend remains bearish, but if $120 holds and $128 is broken with corresponding volumes, a rebound to $134 is possible, caused by buyers reacting to the decline.
