Solana’s investor base is Show unwavering confidence The network sees a shift in its long-term holder profile. According to on-chain data from Glassnode, several other Solana addresses are moving to its long-term holder base, showing strong conviction from investors who entered the market during the recent 2024 rally.
Solana investors are holding steady in anticipation of higher prices
The Solana rally happened It has slowed down in the last seven daysas the cryptocurrency is now showing a noticeable correction. At the time of writing, Solana’s price is down approximately 18% from its all-time high of $263.21, a feat it most recently achieved on November 23.
However, on-chain data from Glassnode, a leading blockchain analytics company, suggests that many Solana investors are choosing to hold on to their assets despite sell-offs from others. In particular, the share of wealth holders locked into the network is growing over the long term, with the 6-12 month group now holding 27% of the total supply.
These holders, often referred to as medium-term accumulators, indicate a persistent bullish sentiment as they show no inclination to sell in the near term. As participants in the recent rally, their holding mentality suggests that the cryptocurrency is attracting new long-term holders and not just short-term holders betting on a rapid price increase.
Image From X: Glassnode
While new long-term holders are increasing their stake, the one- or two-year holding group has seen a sharp decline in the past few months. Glassnode data reveals that this group, which represented 48% of total supply in June, now represents less than 5%.
These were mostly investors from the previous bull cycle, many of whom took advantage of the 2024 rally to turn profits. Their declining presence in the market indicates that much of the profit-taking from this group has ended, and that the supply of Solana shares is now more concentrated in the hands of the new bullish shareholders.
Image From X: Glassnode
What does this mean for Solana price growth?
This shift from old long-term holders to new long-term holders indicates a shift in sentiment surrounding Solana’s price. As it stands, Solana’s price has now reduced selling pressure from many long-time owners who were waiting to take profits.
With fewer previous cycle holders selling and the 2024 rally inspiring strong holding behavior among new participants, the supply and demand dynamics look favorable for another price rally in the coming weeks. This fundamental analysis is supported by several technical analyzes of the Solana price, which indicate price increases.
At the time of writing, Solana is trading at $217, having fallen about 4% over the past 24 hours. However, the outlook remains bullish, especially with Solana price continuing to hold above $200. According to one technical analysis, Solana is still on track to achieve this Reaching a new all-time high before Christmas. Another cryptoanalyst Highlight an interesting pattern That would send Solana on a journey towards the $4,000 price level.
Featured image from CNBC, chart from TradingView
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