New Long-Term Holders Signal Confidence In 2024 Rally Continuation
Solana’s investor base is demonstrating unwavering confidence as the network sees a shift in the profile of its long-term holders. According to on-chain data from Glassnode, many more Solana addresses are moving into the long-term holder base, which showcases strong conviction from investors who entered the market during the recent 2024 rally.
Solana Investors Hold Firm In Expectation Of Higher Prices
Solana’s rally has slowed down in the past seven days, with the cryptocurrency now exhibiting a notable correction. At the time of writing, Solana is about 18% down from its all-time high of $263.21, a feat which it achieved very recently on November 23.
Nonetheless, on-chain data from Glassnode, a leading blockchain analytics company, suggests that many Solana investors are opting to hold on to their assets despite the selloff from others. Particularly, long-term holders’ share of wealth locked in the network is growing, with the 6-12 month cohort now holding 27% of the total supply.
These holders, often referred to as medium-term accumulators, suggest sustained bullish sentiment as they show no inclination to sell in the near term. As recent rally participants, their holding mentality indicates that the cryptocurrency is attracting new long-term holders and not just short-term holders betting on a quick increase in price.
Image From X: Glassnode
While new long-term holders are increasing their stake, the 1-2 year holding cohort has seen a sharp decline in the past few months. Glassnode data reveals 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 rally to lock in profits. Their declining presence in the market suggests that much of the profit-taking from this cohort has concluded, and Solana’s supply is now more concentrated in the hands of new optimistic holders.
Image From X: Glassnode
What Does This Mean For Solana’s Price Growth?
This transition from old long-term holders to new long-term holders suggests a shift in the sentiment surrounding the Solana price. As it stands, the Solana price now has reduced selling pressure from many old holders who were waiting to turn a profit.
With fewer previous-cycle holders selling and the 2024 rally inspiring strong HODLing behavior among newer participants, the supply-demand dynamic appears favorable for another price rally in the coming weeks. Supporting this fundamental analysis are various technical analyses of the Solana price, which point to price rallies.
At the time of writing, Solana is trading at $217, having declined by about 4% in the past 24 hours. Nonetheless, the outlook remains bullish, especially as the Solana price continues to hold above $200. According to one technical analysis, Solana is still on track to reach a new all-time high before Christmas. Another crypto analyst highlighted an interesting pattern that would send Solana on a journey towards the $4,000 price level.
Featured image from CNBC, chart from TradingView
