In our must-read Solana analysis, we outlined how Solana (SOL) can hit $1,000 by 2030, but it’s not a prime investment opportunity at present, in the $80-99 range.
We think that SOL is going to drop at least once in 2024. And that’s great for readers of IH content, because price drops make for perfect entry points.
So while it might rise over the next 12 months, it’s more likely to see a significant drop first, hitting $250 in 2025 and much higher prices in 2026.
There has been a lot of bullish news about Solana recently, resulting in a somewhat inflated price, with greed and FOMO setting in.
See related: Solana to $250 is a possibility.
Making sense of Solana
There’s little doubt that Solana is doing very well in terms of its ecosystem developments. It has secured partnerships with Visa and Spotify. Helium migrated its L1 blockchain to Solana last year, citing faster speeds and lower costs.
The Solana Foundation’s State of Developer Ecosystem Report for 2024 showcased increases in development with impressive on-chain metrics. Mutual funds like VanEck have indicated bullish sentiment on Solana, while the chain itself is known to be low-cost, scalable, and fast.
But strong fundamentals are nearly worthless unless combined with price point analysis. If Sol was priced at $248 (which it has been historically), such news would still be described as “bullish”, though the asset is overpriced.
And given that SOL rose 700% in three months last year, how do we know whether or not fundamental news is already factored into the market? This is why we need to refer to charts to understand what’s a good entry point.
The price of Solana in 2024: the message of the chart
Let’s use the long-term annotated weekly chart from to see what SOL will do in 2024.
We can draw several important elements from the chart above.
- A clear bullish rounded reversal.
- Buying exhaustion, from a 700% increase in just 3 months.
- An inevitable drop and consolidation.
- A potential drop between $55 – $75.
Note that this article was written on January 13th, 2024. So, any price change should be considered when reading this article at a later point in time.
The daily – Solana price in 2024 needs to cool off
The daily chart, below, further indicates an oncoming violation of the rising trendline. We even elaborated on the specifics of the recent rally in this must-read article: Solana (SOL) and the Magical Number 8 in its Chart:
What matters is the grey box – 88 days of an uptrend resulted in price appreciation of $88. This is no coincidence. It certainly is no voodoo nor conspiracy. It’s plain and simple harmony, an harmonic set up. What this means? Very simple – a strong uptrend. This implies that the strong uptrend is over now, for now, trend completion. Solana requires a break which is healthy price action.
Stated differently, we got a high confidence confirmation that the uptrend in Solana turned into either a sideways trend or a temporarily drop. Long term, we remain bullish. But the rising trend is interrupted for now, there is no sugarcoating this fact.
When combined, both charts (above), point toward an overpriced crypto asset in the near term.
We recommend waiting for SOL to drop significantly before making an entry. An entry in the $55-$75 area looks like good value for money considering the 2024 bull market and bi-furcated alt season 2024.
Invalidation of our expectation: if SOL is able to re-claim its rising trendline (green line on the above chart) in a period of 5 to 8 days. In that case, SOL may be in a runaway state. The probability of this to happen, in our view, is very low.
Solana Price Rise In 2024? Likely ‘yes’, there is a ‘but’
Right now, SOL is useful for long-term investors who can stomach short-term volatility. Current Solana holders will go through a rollercoaster ride in 2024.
Make no mistake, those who bought when we flashed our strong buy alerts (SOL trading in the $20-30 area) should hold their tokens.
The point we are trying to make is that Solana needs to cool down a bit. It might not be a star performer in 2024 the way it was outperforming in 2023. Current holders hold, new positions should only be bought on the dip.
While Solana (SOL) will rise in 2024, it will only do so after setting a local bottom at a certain point in 2024. In other word, Solana’s price will likely fall and rise in 2024. We expect a very different year for Solana compared to the 2nd half of 2023 (a one-sided rally).
It’s a decent buy at about $55 – $70 if you’re taken with the token. It could drop 30 – 50% over the coming year, before rebounding in late 2024 or early 2025.
And yes, the steady 7% interest rate with Solana is another investment incentive, but that’s still more of a motivating factor for buy-and-hold investors, not more active traders looking to make serious gains.
Successful SOL predictions from InvestingHaven premium
Solana might be a great ecosystem – but that does not mean its token is a good buy at its current price. So, please ensure to properly interpret the pro-Solana sentiment on social media.
We have previously made some accurate predictions about SOL before in our premium crypto research. These predictions are available in the premium archives.
- On July 7th, 2023, we were bullish on SOL for the first time, when it was priced at a little over $20. We thought this would be a good entry point.
- A month later, we felt that it was still a great long-term buy at $24.
- On October 4th, 2023, we pointed out to subscribers that $31 was a good investment with Solana having an “incredible bottoming formation”.
But we can’t say the same when SOL is trading at nearly $100. There are other tokens we recommend in our premium newsletter that are far better priced.
Disclaimer: This is not financial advice. Please consult with a licensed financial advisor prior to making any investments.