Solana (SOL) has been in the news for the past few weeks, albeit for different reasons. The popular altcoin was one of the many beneficiaries of Donald Trump’s presidential victory, rising 67.69% in the three weeks after November 5 to reach a new all-time high of $263.
However, this price increase was followed by a gradual correction of 15.13% in the last two weeks. Nevertheless, the latest data on investor behavior shows significant market optimism for the fifth largest cryptocurrency.
Solana’s ‘New’ Investors Are Excited About Bullish Futures
In an X post on December 13, blockchain analytics company Glassnode shared an insightful report on the activity of Solana investors in recent weeks. According to Glassnode, Solana investors who entered the market 1-2 years ago have now withdrawn significant portions of their assets.
The analytics team explains that these investors likely bought Solana in 2021 and have now taken profits during the price rally in November, reducing their market share from 48% in June to less than 5% currently.
While a long-term asset decline can sometimes reflect doubts about the asset’s future strength, Glassnode considers this recent sell-off to be the only transaction where many investors want to sell before the next bull is now exiting the market.
Importantly, this selling pressure has been fueled by new Solana investors in the past 6-12 months who have increased their market share to 24% during Solana’s recent price increase. Such a large investment at rising prices reflects confidence among the new owners in Solana’s long-term profitability despite the current price reduction.
VanEck Predicts SOL To Reach $500 in Q1 2025
In other news, leading asset manager VanEck lowered its bullish forecast for Solana ahead of 2025. In their latest insight into digital assets, Head of Digital Asset Research Matthew Sigel, and Senior Investment Analyst Patrick Bush jointly predicted the mainstream crypto market to be bullish. its bullish form going into the new year.
On that note, digital assets will reach their first market peak in Q1 2025 when Bitcoin reaches a value of $180,000. During this session, Solana is expected to trade at $500, representing a potential gain of 124.21% from the stock’s current price.
However, VanEck analysts warn that this attack will likely be followed by Bitcoin experiencing a 30% price correction while altcoins include Solana’s record drop of around 60% as the market enters a summer consolidation.
At the time of writing, Solana continues to trade at $227 indicating a gain of 0.34% over the previous day. Meanwhile, the trading volume of goods decreased by 14.28% and has a value of 4.12 billion dollars.
