Solana Price Volatility Increases Amid SIMD-228 Debate: Can SOL Reach $180?

Solana remains volatile as network validators debate the SIMD-228 proposal. Will the SOL price surge to $180 with a new tokenomics model?

As the crypto market faces a wave of sharp volatility, Solana is fluctuating around the $140 mark. Currently, the SOL token trades at $144, with a lower price rejection from the 24-hour low of $135.

The intraday bullish comeback suggests a potential rise to $150 as Solana validators discuss the SIMD-228 proposal. Will this new Solana improvement proposal spark a bull cycle?

Solana Price Fluctuates Near $140

On the daily chart, the SOL price action shows multiple candles rejecting lower prices over the past week. Currently, Solana trades at $144 with another lower price rejection candle. This follows a 2.06% pullback yesterday.

Solana Price Chart

Solana is facing resistance at the 23.6% Fibonacci level, around $148.86. With overhead resistance and the psychological barrier at $150, Solana is struggling to overcome immediate selling pressure.

Due to the increased volatility, the MACD and signal lines are merging in a lateral trend, reflecting uncertainty in trend momentum. Furthermore, the daily RSI line is fluctuating between the oversold region and the halfway mark.

Thus, the technical indicators suggest Solana is struggling to gain momentum amid current market conditions.

Solana Network Debates a Shift to a Dynamic Inflation Model

As Solana’s price continues to fluctuate, network validators are discussing the SIMD-228 proposal, which relates to network inflation. The Solana Improvement Document (SID) 0228 outlines plans for a new, dynamic, market-driven emission model for Solana tokens.

This would change the way Solana tokens go into circulation. Currently, the network has a fixed issuance rate of 4.66% annually, which will gradually decrease to 1.5% over time.

However, developers plan to implement a dynamic emission model with the new proposal. Notably, market conditions will also dictate this model.

SIMD-0228:

As we head to the vote in epoch 753, I am proud to share that we have spent almost two months discussing SIMD-0228 in public. (Check screenshot for details).

Throughout the process, we incorporated several pieces of community feedback:

1. Transitioned from a… pic.twitter.com/0g138cFGY8

— Vishal Kankani (@kankanivishal) March 6, 2025

If more Solana tokens are staked, it will help reduce unnecessary rewards. On the flip side, if Solana staking falls below 33%, inflation will increase to incentivize more staking.

While small validators may earn less if staking rewards decrease, long-term Solana holders are likely to see their holdings become more valuable due to potentially lower inflation.

In conclusion, if the improvement plan is approved, with 65% of tokens staked at current levels, inflation could drop below 1% per year. However, if staking falls below 33%, inflation will be adjusted to encourage higher staking participation.

Will SOL Price Rise Back to $180?

With a dynamic inflation rate, Solana’s market price will likely experience sharper volatility. However, at current levels, the network may see a decrease in token issuance.

As a result, with a reduced token supply, the market price could experience an artificial surge in demand, potentially leading to a bullish spike. Based on Fibonacci levels, the key resistance beyond the $150 mark is the 50% retracement level, around $180.

On the other hand, crucial support remains in the demand zone between $135 and $125.

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