Solana (SOL) has been in the news over the past few weeks, albeit for different reasons. The popular altcoin was one of the many beneficiaries of Donald Trump’s presidential victory, surging 67.69% in three weeks after November 5 to reach a new high of $263.
However, this price rise was followed by a gradual correction of 15.13% in the last two weeks. Although recent data on investor behavior shows great optimism in the market regarding the fifth largest cryptocurrency.
The “new” investors in Solana are buoyed by the bullish future
in X Posted on December 13, Blockchain analytics firm Glassnode shared an insightful report on Solana investor activity in recent weeks. According to Glassnode, Solana investors who entered the market a year or two ago have unloaded large portions of their holdings.
The analytics team explains that these investors most likely bought Solana during its 2021 bull run and have now cashed in during November’s price surge, reducing their market share from 48% in June to less than 5% currently.
While a decline in long-term holdings can sometimes signal doubts about the future potential of an asset, Glassnode views these recent sales as purely transactional as most investors are looking to sell ahead of the next uptrend that is now exiting the market.
Importantly, this selling pressure has been largely absorbed by new investors in Solana over the past six to 12 months who increased their market holdings to 24% during the recent Solana price rally. Such a huge investment at high price levels indicates confidence among the new owners in Solana’s long-term profitability despite its current low price.
VanEck expects SOL to reach $500 in the first quarter of 2025
In other news, prominent asset manager VanEck dropped a bullish forecast for Solana before 2025. Latest thoughts on digital assetsHead of Digital Asset Research Matthew Siegel and Senior Investment Analyst Patrick Bush expect the overall cryptocurrency market to maintain its bullish shape heading into the new year.
In this regard, the digital asset will reach its first market peak in the first quarter of 2025 with the price of Bitcoin reaching $180,000. During this rally, Solana is expected to trade at $500, indicating a potential gain of 124.21% on the current price of the asset.
However, VanEck analysts warn that this rally is likely to be followed by a 30% decline in Bitcoin’s price, while altcoins including Solana are recording declines of around 60% as the market enters a consolidation phase in the summer.
At the time of writing, Solana continues to trade at $227, reflecting a 0.34% gain in the past day. At the same time, asset trading volume decreased by 14.28% and reached $4.12 billion.
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