Solana’s investor base is display of unwavering confidence Because the network sees a change in the profile of its long-term holders. According to on-chain data from Glassnode, many more Solana addresses are moving into the long-term holder base, reflecting the conviction of investors who entered the market during the recent 2024 rally.
Solana investors remain hopeful of higher prices
Solana’s rally is slowed down in the last seven daysWith cryptocurrencies now showing a remarkable improvement. At the time of writing, Solana is down about 18% from its all-time high of $263.21, a feat it recently achieved on November 23.
Nonetheless, on-chain data from leading blockchain analytics company Glassnode shows that many Solana investors are choosing to hold onto their assets despite others selling off. Notably, the share of long-term holders in assets locked in the network is increasing, with the 6-12 month group now accounting for 27% of the total supply.
These holders, often known as medium-term accumulators, suggest continued bullish sentiment as they show no tendency to sell in the near term. As for the participants of the recent rally, their holding mentality indicates that the cryptocurrency is attracting new long-term holders, not just short-term holders who are betting on a quick rise in price.
Image From X: Glassnode
While new long-term holders have been increasing their stake, the 1-2 year holding group has seen a sharp decline in the last few months. This group, which represented 48% of total supply in June, now represents less than 5%, Glassnode data shows.
These were mostly investors from the previous bull cycle, many of whom took advantage of the 2024 rally to book profits. Their declining presence in the market suggests that most of the profit taking from this group is over, and Solana supply is now more concentrated in the hands of new optimistic holders.
Image From X: Glassnode
What does this mean for Solana’s price growth?
This change from old long-term holders to new long-term holders suggests a change in sentiment around Solana price. In the current situation, Solana price has now reduced the selling pressure on many old holders who were waiting to make profits.
While previous-cycle holders’ short selling and the rally to 2024 have driven strong HODLing behavior among new participants, supply-demand dynamics appear favorable for another price rally in the coming weeks. Supporting this fundamental analysis are various technical analyzes of Solana price, which point towards price rallies.
At the time of writing, Solana is trading at $217, down nearly 4% in the last 24 hours. Nonetheless, the outlook remains optimistic, especially as Solana price remains above $200. According to a technical analysis, Solana is still on track Reach a new all-time high before Christmas. Another crypto analyst highlight an interesting pattern Which will take Solana towards the $4,000 price level.
Featured image from CNBC, chart from TradingView
