Solana’s investor base is showing unwavering confidence because the network is seeing a change in the profile of its long-term holders. According to on-chain data from Glassnode, many more Solana addresses are entering the long-term holder base, reflecting the high conviction of investors who entered the market during the recent 2024 rally.
Solana Investors Stand Firm Awaiting Higher Prices
The Solana gathering slowed down in the last seven daysthe cryptocurrency now exhibiting a notable correction. At the time of writing, Solana is down about 18% from its all-time high of $263.21, a feat it achieved most recently on November 23.
Nonetheless, on-chain data from Glassnode, a leading blockchain analytics firm, suggests that many Solana investors are choosing to hold on to their assets despite others selling off. In particular, the share of long-term holders of wealth locked in the network is increasing, 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 increase.
Image From X: Glassnode
As new long-term holders increase their stake, the cohort of 1-2 year holders has seen a sharp decline in recent months. Glassnode data reveals that this group, which accounted for 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 lock in profits. Their diminishing presence in the market suggests that much of this cohort’s profit-taking has ended and Solana’s supply is now more concentrated in the hands of new bullish 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 surrounding Solana price. As it stands, the price of Solana has now reduced the selling pressure of many former holders who were waiting to make a profit.
With fewer holders from the previous cycle selling and the 2024 rally inspiring strong HODLing behavior among new participants, the supply-demand dynamic appears favorable for further price action in the coming weeks. Supporting this fundamental analysis are various technical analyzes of Solana price, which indicate rising prices.
At the time of writing, Solana is trading at $217, following a roughly 4% decline in the past 24 hours. Nonetheless, the outlook remains optimistic, especially as Solana price continues to hold above $200. According to technical analysis, Solana is still on track to reach a new record before Christmas. Another crypto analyst revealed an interesting pattern this would send Solana on a journey towards the $4,000 price level.
Featured image from CNBC, chart from TradingView
