Solana’s investor base is showing unwavering confidence as the chain sees a change in the profile of its long-term holders. According to on-chain data from Glassnode, significantly more Solana addresses are entering the long-term holder base, demonstrating powerful confidence among investors who entered the market during the recent 2024 rally.
Solana investors are keeping their expectations high as they wait for higher prices
Solana Rally has slowed down in the last seven dayswith the cryptocurrency currently showing a marked correction. At the time of writing, Solana is approximately 18% below its all-time high of $263.21, which it recently reached on November 23.
Nevertheless, on-chain data from Glassnode, a leading blockchain analytics company, suggests that many Solana investors are choosing to hold on to their assets despite sell-offs from others. In particular, the share of long-term holders in locked-down assets is growing, with the 6-12 month ancient cohort now holding 27% of the total supply.
These holders, often called medium-term accumulators, suggest continued bullish sentiment as they show no inclination to sell in the near future. Like participants in recent rallies, their holding mentality indicates that the cryptocurrency is attracting fresh long-term holders, not just short-term holders betting on a rapid price escalate.
Image From X: Glassnode
While fresh holders of long-term bonds are increasing their holdings, the group of 1-2-year investors has seen a piercing decline over the past few months. Glassnode data shows that this group, which represented 48% of the total supply in June, now accounts for less than 5%.
These were mostly investors from the previous bull cycle, many of whom took advantage of the 2024 bull market to lock in profits. Their dwindling presence in the market suggests that most of this cohort’s gains have ended, and Solana’s supply is now more concentrated in the hands of fresh, confident holders.
Image From X: Glassnode
What does this mean for Solana price increases?
This shift from ancient long-term holders to fresh long-term holders suggests a change in sentiment around Solana’s price. As it stands, Solana’s price has eased the selling pressure from many ancient bondholders who were waiting to make a profit.
With fewer prior cycle holders selling and a 2024 rally that has sparked powerful HODLing behavior among fresh entrants, supply and demand dynamics appear favorable for another price rally in the coming weeks. This fundamental analysis is supported by various technical analyzes of Solana’s price, which point to price increases.
At the time of writing, Solana is trading at $217, after falling about 4% in the last 24 hours. Nevertheless, the outlook remains confident, especially as Solana’s price continues to remain above $200. According to one technical analysis, Solana is still on track reach a fresh all-time record before Christmas. Another cryptanalyst highlighted an engaging pattern which would send Solana on a journey towards the $4,000 price level.
Featured image from CNBC, chart from TradingView
