Solana ($SOL) is an open-source foundation-led ecosystem that has steadily been gaining traction in recent years, seeing increases in developers (2.5K), active accounts (11.5M), and users (40M daily transactions).
With average transaction fees of $0.00025 and testnet speeds of 60,000 transactions per second, it’s a viable Ethereum alternative, especially taking extortionate ETH gas fees into account. Solana is carbon neutral and is becoming quite an attractive ecosystem for developers to build on.
At the time of writing, the price of SOL is $97. Let’s take a look at whether the $1,000 price tag is justified or not.
See related: Will Solana Flip Ethereum?
Solana Fundamentals For 2024
First and foremost, the Solana fundamentals are exceptional. In equity terms, Solana is a blue-chip crypto. While many predicted that the SBF fiasco would put Solana out of business, after it crashed 94%, it quickly moved beyond it, gaining 300% within a year, to become one of 2023’s best performers.
It has a huge community, tiny transaction costs, and a full suite of development tools. But what’s more interesting are the companies building with, and on, Solana. Helium, a LoRaWAN hotspot provider, migrated its services to the Solana blockchain in 2023. Helium provides hotspots in 170 countries and 5G services to some US cities. The cited reason for the migration was that the network could not keep up with growth, needing more operational efficiency.
This was one of the largest L1 migrations in history. Other notable platforms launched from Solana include Star Atlas, STEPN, Civic, Injective Protocol, Raydium, Mayan Finance, Serum, and Wormhole Bridge. Hivemapper and ASICS are other Solana case studies with potential. The Solana Foundation is definitely making its presence felt in Web3. And not just Web3 – it has entered partnerships with Visa and Spotify.
“The network is strong heading into 2024, with recent reports highlighting the 2500+ developer community, 40.7 million daily user transactions, & mature tooling.”
But while Solana looks great in terms of fundamental analysis, this is not enough to make a sound investment decision. All it means is that SOL is unlikely to decrease significantly without bouncing back (unlike other coins with no utility value) and that the trend should generally move upward, over the coming years. Remember that Ethereum had these impressive-looking metrics for many years, but this information was not reflected in price movements.
SOL A Little Overpriced In The Short Term?
From a charting perspective, the SOL price might find it difficult to hit $1,000 in the short to medium term.
Network developments and upgrades are great on a 3 to 10-year basis, for buy-and-hold investors who can invest at a bottom and hold for appropriate intervals – certainly not a common trait for crypto investors!
However, they can be misleading to investors who don’t fully understand how cycles work in the crypto markets. It often leads to investing high, getting frustrated about a lack of upward price movements, and selling prematurely.
Meanwhile, the daily Solana chart indicates exhaustion.
Source: TradingView by InvestingHaven.com
After Solana’s recent rise from $23 in October 2023 to its current price of $97, an investment right now would be a little premature, unless you’re willing to handle 30 – 50% retracements in the short term.
SOL Price Could Hit $1,000 By 2030 – But Buyers Beware
Over the long term, the price of SOL could hit $1,000 by 2030. It shows a bullish chart structure and combined with the previous chart, indicates a cup-and-handle formation before hitting the $1,000 threshold.
In the near term, it indicates a rounded pattern with a bullish reversal.
Source: TradingView by InvestingHaven.com
Remember that there are going to be a lot of ups and downs between its current price and its ATH. There is also quite likely to be a much better entry point below $97, especially with the bullish reversal in sight.
The current price is only recommended for the buy-and-hold investor, who will almost need to ignore the daily and monthly charts (which might encourage a premature sale).
Time Entries And Exits With IH Premium Crypto Investment Services
The premium crypto service at Investing Haven combines time with price for precise entry and exit points, which makes all the difference for cost-conscious investors looking to maximize ROI.
We’ve been extremely accurate concerning SOL, warming to it when it was $20.
- On July 7th, 2023, we highlighted to our premium subscribers that $20.86 was an attractive price.
- On August 8th, 2023, we recommended it again at $24.16, outlining how it continued to improve as a long-chart setup.
- On October 24, 2023, we commented on the impressive bottoming formation on the chart, when it was priced at $31.12.
All of our previous wins are documented in the premium service. We don’t recommend Solana now as there are tokens with far better multipliers, though it’s certainly not a bad buy-and-hold coin.
SOL To Hit $1,000 By 2030
It’s certainly possible for the price of SOL to hit $1,000 by 2030. We just think buying at a high price and waiting for 6 years is a losing strategy, for the simple reason that most people do not have the patience or emotional mastery to do this.
Most would, ironically, sell at another SBF-like drop of 94% – the worst possible time.
To know the best possible entry range for coins like SOL (and many other superior recommendations), as well as the rationale behind them, check out our premium newsletter.
Disclaimer: This is not financial advice. Please consult with a licensed financial advisor prior to making any investments.
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