Solana (SOL) price analysis: fundamentals exceed price - is it worth investing now?

Solana (SOL) price analysis: fundamentals exceed price - is it worth investing now?

According to a report by bitcoin-2go.de, the cryptocurrency Solana (SOL) has recorded slight price drops in recent trading days due to the Binance accusation. Nevertheless, it showed a remarkable performance in 2023. The question now is whether it is still worth investing in Solana (SOL).

Solana: Fundamentals are more important than price!

Solana (SOL) transaction costs average less than $0.01 compared to up to $15 for Ethereum (ETH). This cost advantage makes Solana (SOL) particularly attractive for frequent transactions. The fast transaction speeds enable transactions to be completed in less than 500 milliseconds compared to Ethereum (ETH)'s 15 minutes. The rapid growth of the Solana ecosystem indicates its long-term potential, which is why further price increases are possible.

These points speak against further price increases for Solana

The SEC has rocked the crypto market several times by announcing regulatory actions against cryptocurrency exchanges, often labeling Solana as an unregistered security. For long-term investors, this assumption could be a cause for concern, as it is still not clear how Solana (SOL) should be treated from a legal perspective. However, the case of Ripple (XRP) is positive, as the prevailing opinion here is that the probability of Solana (SOL) being classified as a security is significantly reduced.

Solana (SOL) chart analysis

Despite the price setback of the past few days, Solana is still scoring with an extremely strong annual performance and is currently trading at more than 400 percent above the price on January 1, 2023. The Bollinger bands are currently still wide apart, but you can see how the upper band is turning, which illustrates the downward trend of the price. The RSI is back in neutral territory at a level of 57. This slight correction is good as it removes selling pressure from the market and opens up the possibility of further gains after a period of stabilization.

Conclusion on the current Solana price

The cryptocurrency Solana (SOL) suffered heavily from the FTX crash in 2022, but has shown strong performance this year. The fundamentals support the long-term potential. The current correction offers an attractive entry or follow-up purchase opportunity.

It is very important to note that one does not select an investment product based on price, but rather through comprehensive fundamental and chart analysis. Just because an asset has been 100% above the current price level in the past does not mean that it will reach that level again in the future. Therefore, it is crucial to thoroughly analyze the fundamentals and current market situation before investing in Solana (SOL).