Solana’s investment base is demonstrating unwavering confidence as the network sees a change in the profile of its long-term incumbents. According to on-chain data from Glassnode, many more Solana addresses are moving into the long-term holder base, showing strong conviction from investors who entered the market during the recent 2024 rally.
Solana investors hold firm in anticipation of higher prices
The Solana rally has slowed down in the last seven daysand the cryptocurrency is now showing a notable correction. At the time of writing, Solana is approximately 18% below its all-time high of $263.21, a feat it achieved very recently, on November 23.
However, on-chain data from Glassnode, a leading blockchain analytics company, suggests that many Solana investors are choosing to hold onto their assets despite the liquidation of others. In particular, the share of long-term holders in the wealth locked on the network is growing, with the 6-12 month cohort now holding 27% of the total supply.
These holders, often called medium-term accumulators, suggest sustained bullish sentiment as they show no inclination to sell in the short term. As recent participants in the rally, their holding mentality indicates that the cryptocurrency is attracting new long-term holders and not just short-term holders betting on a rapid price rise.
Image From X: Glassnode
While new long-term holders are increasing their participation, the group of 1-2 year holders has seen a sharp decline in recent months. Glassnode data reveals that this group, which represented 48% of the 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 lock in profits. Its declining presence in the market suggests that much of this cohort’s profit-taking has concluded, and Solana’s supply is now more concentrated in the hands of optimistic new holders.
Image From X: Glassnode
What does this mean for Solana price growth?
This transition from old long-term holders to new long-term holders suggests a change in sentiment around Solana price. As it stands, Solana’s price has now reduced selling pressure from many former holders who were hoping to profit.
With fewer previous cycle holders selling and the 2024 rally inspiring strong HODLing behavior among newer participants, 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 price of Solana, which point to price rallies.
At the time of writing, Solana is trading at $217, having fallen approximately 4% in the last 24 hours. However, the outlook remains bullish, especially as the price of Solana continues to remain above $200. According to a technical analysis, Solana is still on track to reach a new all-time high before Christmas. Another crypto analyst highlighted an interesting pattern that would send Solana on a journey towards the $4,000 price level.
Featured image from CNBC, chart from TradingView
