On-chain data shows Solana is hovering around its Realized Price right now, a level that has historically served as the boundary for major trend shifts.
Solana Has Plunged To The Realized Price Recently
In a new post on X, CryptoVizArt.₿, senior analyst at the on-chain analytics firm Glassnode, has discussed about the Realized Price of Solana. The “Realized Price” refers to an indicator that, in short, keeps track of the cost basis of the average investor or address on a given cryptocurrency network.
When the value of this metric is under the spot price of the asset, it means the holders as a whole can be assumed to be in a state of profit. On the other hand, it being under the coin’s value suggests the overall market is carrying a net loss.
Now, here is the chart shared by the analyst, that shows the trend in the Realized Price for Solana over the last few years:
As displayed in the above graph, Solana had been trading above its Realized Price during the last year or so, which means the cryptocurrency’s holders had been enjoying profits on average.
In the last few days, however, the entire digital asset has been shocked by a crash, and SOL has been no exception. As a consequence of this plunge, the coin’s price has retraced to the Realized Price, implying the holders are now sitting around their break-even level.
Historically, the Realized Price has been a critical level for not just Solana but cryptocurrencies in general. This is because of the fact that investors tend to react more strongly to movements that relate to their cost basis.
During bullish trends, the level can act as support for the asset’s price, as investors are keen on buying ‘dips.’ If the level is lost, however, it signals that the holders are no longer accumulating at their break-even. From the chart, it’s apparent that the last time this type of breakdown took place was in 2022.
Back then, Solana fought to stay above the level for around five months before the bulls finally gave out and the coin slipped under it, kicking off the bear market. It wasn’t until the last quarter of 2023 that optimism around the token returned, and the price was able to recover above the line.
With SOL again retesting this important level, it remains to be seen what trajectory the cryptocurrency will pick this time around. “Failing to hold above this level now could signal a deeper market correction,” notes the Glassnode analyst.
SOL Price
At the time of writing, Solana is trading around $133, down more than 25% over the last week.
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
Keshav Verma
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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