Native token Solana (SOL) network fell below the realized price for the first time since 2021. As of now, SOL is trading at $125, which is 8% below the realized price of $134. The latter is the average realized price at which most coins were last moved on the blockchain. This means that many investors are now holding SOL at a loss. And this may put additional pressure on sales.
There are several reasons for this reduction in the SOL price. First, the bitcoin and other cryptocurrencies lost ground, which affected the overall market sentiment. In addition, uncertainty about interest rates and risky assets continues to weigh on the market. As well as the correction, in 2023-2024, SOL grew by more than 800%.
Often, assets with a strong position quickly recover from falls below the realized price, which may indicate potential accumulation zones (investors buying up Solana). However, if SOL fails to return above this level, a further decline to $110 or even lower is possible.
Source: Glassnode
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