When Is The Right Time To Invest And Sell Solana (SOL)?

Is It A Good Time To Invest In Solana (SOL) Now?

Last Updated January 26th 2022
9 Min Read

Solana (SOL) was one of the best performing cryptocurrencies in 2021. In this article, Trading Education shares extensive details about the right time to invest and sell Solana. This information will embolden you to know the right times to invest in Solana and the right times to let go of your SOL holdings. 

Solana continues to be one of the most talked-about blockchain technologies in the space today. 

This has transformed positively on its native asset, SOL, which continues to record at least $1 billion in daily volume at the time of writing. 

Such volume means that SOL continues to experience sharp rises and sharp declines in its market valuation. 

SOL increased substantially during the crypto boom of February, March, April, and the first two weeks of May 2021. 

On Wednesday, 12th May, Tesla Mogul Elon Musk announced that due to environmental concerns he is withdrawing support for Bitcoin (BTC) which was accepted as a payment method in March 2021. This resulted in negative crypto market sentiment. 

SOL opened the day by trading for $44.59, reached a day high of $48.98, and closed at $42.46

Within hours, SOL gained 9.84526% from its opening to its day high and lost 13.3116% of its day high.

Elon Musk’s announcement came after Turkey announced a ban on the use of cryptocurrency in April 2021. 

Unfortunately, the market was not about to recover. 

China announced a major crackdown on cryptocurrencies which it deemed as a threat to the stabilized nature of centralized finance on 19th May. 

The resultant effect of this was a plunge in the price of all digital assets. 

Solana (SOL) opened the day by trading for $56.09, reached an intraday high of $57.53, tested an intraday low of $29.43, and closed the day at $35.11

Within hours, SOL increased by as much as 2.5673% from its opening to its intraday high and decreased by 48.8441% from the day high to its intraday low. 

After several attempts to recover its new all-time high in May, SOL finished May with a trading price of $32.82

This means that SOL shed 23.4787% of its opening day price on 1st May when it traded for $42.89

In the space of 30 days, Solana dropped from being categorized as a large-cap digital asset with $13,490,574,631 ($13.4 billion) to a medium cap digital asset with $8,946,936,843 ($8.95 billion) as market capitalization.

Solana Volatility 

This gives a clear depiction of the volatile nature of the crypto finance space and more specifically the volatility of the Solana cryptocurrency

Although several beginners or novice traders see volatility as a sign of risk, experienced traders see volatility as a sign of opportunity. Day traders, cryptocurrency traders, blockchain enthusiasts, and decentralized finance experts can take advantage of the multiple percentage swings and make huge sums of money within a short period. 

Once there are dips, you can buy more cryptos at relatively lower prices. 

This is the primary reason why millions of people ask the question, how does a novice investor decide when to invest in Solana and cryptocurrencies in general?

Many analysts and experts across crypto news and forecasting portals such as CryptoNewsz, Price Prediction, Digital Coin Price, Trading Beasts, and Wallet Investor believe the current volatility in Solana’s price will only be short-lived. 

As per their respective predictions, they estimate another bullish engulfing for the crypto market in 2022 and beyond. 

According to the analysts, this will take SOL to new price milestones such as crossing $500 at worst and $1,000 at best. 

They attributed this to the thriving ecosystem of the Solana project. 

Whatever the situation may be, you should know that in the world of crypto trading and investing, there are no shortcuts to making gains. Digital coins hold no intrinsic value. 

As a result, the utility rate of a particular network can increase but its native asset can only gain value through the demand of the tokens by traders and investors. 

This is the primary reason why you should take an extensive stake in the market so that you would be able to react to market trends promptly. 

Despite the volatile nature of the market, Trading Education believes that long-term holders of SOL and other tokens have seen more than 300% returns. 

Therefore, we can say that having time in such a highly volatile market is far better than trying to time such an unpredictable market.

One way of understanding the future price valuation of Solana and the possible passive income you can receive is to study the price performance of the token in the last 6 months to one year. Solana (SOL) was worth $1.86 on 5th December 2020 and the trading volume for the day stood at $7,750,781 ($7.7 million). 

Six months later on 5th June 2021, SOL commanded a trading price of $37.42 and the trading volume for the day stood at $1.1 billion

After another six months on 5th December 2021, SOL had a price of $198.79 and a day volume of $3 billion

Solana increased by 1,911.83% from December 2020 to June 2021 and 431.24% from June 2021 to December 2021. 

Overall, Solana has returned approximately 17,122.5% from 1st January to December 2021.

When To Invest In Solana (SOL)? 

As a novice or seasoned investor, adhering to the golden rule of trading (buy when prices are low and sell when prices are high) will serve you well. 

Investing in Solana (SOL) during a bearish engulfing of the crypto market where prices are low but the token is expected to increase substantially to new high highs is normally considered a great move by many experts. 

When you compare SOLs price at the end of June ($35.56) and its price at the time of writing ($95.85), you can see that the bears have ended.

Although Solana continues to trade at a price above the current levels of Shiba Inu (SHIB), Dogecoin (DOGE), Cardano (ADA), Stellar Lumens (XLM), Polygon (MATIC), Cosmos (ATOM), Eosio (EOS), and Tronix (TRX), it is still on the low side when compared to others. 

Binance Coin (BNB), Ether (ETH), Bitcoin (BTC), and Maker (MKR) trade at prices that are more than double the price of Solana.  

This means that with a $1,000 investment, you can buy 10 SOL coins. A $2,000 investment can buy you 20 SOL tokens and a $10,000 capital can buy you 104 SOL tokens. 

To tell you the truth, there is no perfect time to invest in Solana. However, if you want to invest in Solana and hold onto the coins for a minimum of one (1) year, taking advantage of the slight dip in prices in the current market could bring you massive returns in the future. 

Did you know that Solana turned $100 investments in January into $17,222 in November 2021? 

Did you know that Solana turned a $1,000 purchase of the token on the first day of 2021 into $172,225 when it reached an all-time high price of $260.06 in November 2021?

Although it would have been great to have invested in Solana at the beginning of the year, it is not late. 

As per the possibilities of the Solana ecosystem, SOL could reach milestones no one ever expected. 

Check Out: Investing In Solana Right Now Could Make You A Millionaire Retiree

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

When To Sell Solana (SOL)? 

When it comes to selling Solana and cryptocurrencies in general, there are no right times. Several early investors of Solana let go of their assets when the coin started reaching new high highs. 

Many traders and investors bought 1,201 SOL coins with a $1,000 investment on 10th April 2020 when it traded for $0.832

When Solana crossed the $2 milestone for the first time and reached $2.03 to close out on 7th November 2020, many investors sold their holdings. Their $1,000 investment within 7 months increased to $2,764 (this was a 176% increase in capital).

There was a boom in cryptocurrencies towards the end of 2020 and many experts felt this could be carried through the rest of 2021. Fortunately, these predictions came through as SOL crossed the $5 mark on 2nd February 2021. 

Sensing an opportunity to lock gains and take off with profits, many holders sold their SOL tokens. 

At $5, their $1,000 investments increased to $6,009 (a 500% increase in the space of 10 months). 

Unfortunately, the selling pressure did not do much to Solana’s price. The altcoin carried on and crossed $10 in the third week of February bringing huge gains to holders.

As the crypto boom intensified in March, Bitcoin crossed $50,000, and SOL tested $20 for the time. This took $1,000 investments to $24,038 within 11 months

Solana went on to surpass the expectations of several analysts by crossing $30 and $40 in April 2021. 

After reaching $50 in May and going through extensive declines in June and July, many investors sold their holdings because of a fear of gains being wiped off. 

With a resurrection of the markets in August, SOL crossed $60, $70, $80, $90, and $100 to close the month. 

This means long-term holders of the Solana crypto that held onto coins saw their $1,000 investments increase to $120,192 (an 11,919.2% in a space of 16 months). 

With at least $3 billion in daily trading volume towards the end of August, Solana crossed $110, $150, and $200 within the first 10 days of September. 

Seeing another opportunity to lock gains, some holders sold off their entire SOL investment which had increased to $240,384 (a 23,938.4% increase in 17 months). 

Most sellers were not wrong as October brought about a slight decline in the price of digital coins. 

SOL recorded a trading volume of more than $3 billion when it reached a new all-time high in November 2021. 

To the investors who were patient enough and had $250 as the price ceiling, at the time they let go of their Solana investments, their $1,000 investments increased to $312,572.

Investing In Solana (SOL): How Do I Sell Solana At The Right Time?  

From the price history of Solana and the volatility of its price as presented above, you can see that there is no perfect time to let go of your holdings. 

Trading Education will like you to take advantage of the price alert feature on cryptocurrency exchanges. 

With this feature, you can invest in SOL at $200, and set up an alert of $500

Once Solana reaches such a milestone, you will be notified via messages on your phone and email. 

If you do not have time to monitor your email, phone messages, or price of Solana on charts, you can set up a sell order. 

With this, you can issue a command that the exchange should sell your SOL holdings if it should test, let's say, reach $800

In such a case, you stand a chance of making a $600 profit if you invested $200 in SOL without having to spend time sitting behind a personal computer or smartphone. 

Is Solana a Millionaire Maker? Yes! Solana has already made millionaires out of people. Those investors had a target they wanted SOL to reach. 

Once their price ceiling was tested, they locked in gains and took off with the earnings. 

SOL has worked for several people. With the right strategy, SOL could work for you too. 

eToro – The Best Platform To Buy Solana

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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