Emily Walker
Solana is attracting a steady group of investors as it experiences a change in the demographics of its long-term holders. On-chain insights from Glassnode reveal that an increasing number of Solana addresses are entering the long-term holding segment, reflecting strong faith from those who joined during the recent rally in 2024.
Solana Investors Remain Optimistic About Future Gains
The growth in Solana’s value has slowed over the past week, showing signs of a slight downturn. Currently, Solana’s price is approximately 18% lower than its peak of $263.21, reached on November 23.
However, insights from Glassnode indicate that many investors are choosing to maintain their positions despite some market pullbacks. The share of wealth held by individuals with 6-12 months of holdings has now risen to 27% of the total supply, demonstrating a strong commitment.
These medium-term investors show a strong bullish outlook, indicating they do not plan to sell anytime soon. Their steadfast approach signals that Solana is gaining traction with new long-term holders rather than attracting just those looking for quick profits.
As newer long-term holders increase their ownership, the number of investors retaining their holdings for 1-2 years has drastically decreased in recent months. Glassnode reports that this group, which made up 48% of the total supply in June, now represents less than 5%.
This shift mainly reflects previous cycle investors who capitalized on the 2024 rally to secure profits. Their reduced presence suggests that profit-taking is now mostly finished, with Solana’s available supply shifting towards a more optimistic group of holders.
Implications for Solana’s Price Trend
This movement from established long-term holders to newer ones indicates a changing perception of Solana’s pricing. With many older holders no longer selling to realize profits, the pressure to sell has lessened.
The reduced activity from previous cycle holders, combined with a growing trend of new investors holding their assets, creates a more favorable environment for Solana’s price to increase in the weeks ahead. This sentiment is further supported by technical evaluations of Solana’s price, indicating potential upward movements.
Currently, Solana is valued at $217, reflecting a 4% drop in the last 24 hours. Nevertheless, the future outlook seems positive, particularly as Solana maintains its position above the $200 mark. Some analysis suggests that Solana may be on course to achieve a new all-time high before Christmas. One analyst has even pointed out a pattern that could propel Solana toward a $4,000 valuation.
Image courtesy of CNBC, chart data from TradingView