Solana’s investor base is showing unwavering confidence as the network sees a change in the profile of its long-term owners. According to on-chain data from Glassnode, some Solana addresses are entering the territory of long-term owners, indicating a strong belief in investors entering the market during the latest meeting in 2024.
Solana Investors Hold Firm in Expectations of Higher Prices
Solana’s meeting was held it was slowed down seven days agowith cryptocurrency now showing a significant correction. At the time of writing, Solana is about 18% down from its all-time high of $263.21, which it recently hit 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 the selloff from others. In particular, the share of wealth held by long-term holders in the network is increasing, with the 6-12 month group now holding 27% of the total.
These owners, often referred to as medium-term collectors, suggest persistent sentiment as they show no tendency to sell in the near term. As recent rally participants, their holding attitude shows that the cryptocurrency is attracting new long-term holders and not just short-term holders who are betting on a quick price rise.
Image From X: Glassnode
While new long-term owners are increasing their numbers, the 1-2 year tenure group has seen a sharp decline in the past few months. Glassnode data shows that this group, which represented 48% of the total available in June, now averages less than 5%.
Most of these were investors from the previous bull cycle, many of whom took advantage of the 2024 rally to profit. Their decline in the market suggests that much of the profitability of the group is over, and Solana’s supply is now firmly in the hands of hopeful new owners.
Image From X: Glassnode
What Does This Mean for Solana’s Price Increase?
This shift from long-term owners to new long-term owners suggests a change in sentiment around Solana’s price. As it is, Solana’s price has now eased the selling pressure from many older owners who have been waiting to make a profit.
With few owners of the previous cycle selling and the 2024 meeting encouraging strong HODLing behavior among new participants, the demand for supply seems poised for another price rally in the coming weeks. Supporting this fundamental analysis is various technical analysis of the price of Solana, which points to price circles.
At the time of writing, Solana is trading at $217, down nearly 4% in the last 24 hours. Nevertheless, the opinion remains, especially since the price of Solana continues to hold above $ 200. According to some technical analysis, Solana is still on the way reach a new high before Christmas. Another crypto analyst highlighted an interesting pattern that would send Solana on a journey toward the $4,000 price level.
Featured image from CNBC, chart from TradingView
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