Solana’s SOL Breaks Below $134 Support as Market Sell-Off Intensifies
Solana’s SOL tumbled 8% on Monday, dropping to $124 as a broader crypto market downturn weighed on prices. This marks the first time since May 2022 that SOL has fallen below its realized price of $134, an on-chain metric that reflects the average cost basis of all tokens last moved.
Falling below the realized price is often seen as a bearish signal, indicating that the average investor is now at a loss. This can lead to further selling pressure as traders seek to cut losses or reposition.
Meanwhile, Solana’s validator community is debating SIMD-0228, a proposal that could lower the blockchain’s inflation rate from 4.7% to around 1.5% over time. While the change could positively impact SOL’s long-term tokenomics, short-term uncertainty is adding to the market’s cautious tone.
Technically, SOL remains in a downward trend, with resistance now at $130 and the previous support level of $134. Key support areas to watch include $120 and $115. A breakout above $128 with strong volume could trigger a recovery toward $134, but the overall trend remains bearish for now.
