Solana Investors Double Down: New Long-Term Holders Signal Confidence In 2024 Rally Continuation

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As a seasoned researcher with over a decade of experience in the cryptocurrency market, I find myself intrigued by the current state of Solana. The recent shift in the profile of its long-term holders is a clear testament to the unwavering confidence investors have in this promising blockchain.

As a crypto investor, I’ve noticed an undeniable surge of confidence in Solana as its network dynamics subtly evolve. From my perspective, there seems to be a notable shift in the character of long-term holders, a trend that’s evident from on-chain data provided by Glassnode. More and more Solana addresses are joining the ranks of long-term holders, which underscores the unwavering trust that investors have placed in this digital asset following the 2024 market rally.

Solana Investors Hold Firm In Expectation Of Higher Prices

Over the last week, the momentum of Solana’s growth has decreased significantly, showing signs of correction. As I write this, Solana is approximately 18% lower than its all-time peak of $263.21, a level it attained just a few days ago on November 23.

Nevertheless, data from Glassnode, a well-known blockchain analytics firm, indicates that numerous Solana investors are choosing to keep their assets even during the selloff experienced by others. Notably, the proportion of wealth locked in the network owned by long-term holders is increasing. Specifically, the 6-12 month group now controls approximately 27% of the total supply.

These accumulators, commonly known as medium-term storage units, seem to indicate a persistent optimistic outlook because they don’t appear eager to sell soon. As part of the recent surge, their investment mindset signals that cryptocurrency is attracting not just speculators seeking quick profit gains, but also new investors intending for long-term ownership.

As an analyst, I’ve noticed an interesting trend: The number of long-term holders (those who have held for more than a year) is steadily increasing. However, over the past few months, there has been a significant decrease in the number of holders in the 1-2 year category. According to data from Glassnode, this group, which accounted for 48% of the total supply back in June, now makes up less than 5%. This suggests a possible shift in holding patterns among investors.

Mostly, these were individuals who had invested during the prior bull market, many of whom cashed in on the 2024 rally. The diminishing number of these investors in the market indicates that they’ve largely completed their profit-taking, leaving Solana’s supply predominantly with newer, hopeful owners.

What Does This Mean For Solana’s Price Growth?

The change from established investors to newer long-term investors indicates a fluctuation in feelings towards Solana’s market value. At present, there is decreased urge to sell among veteran investors who had been patiently waiting to realize their profits.

In simpler terms, as fewer people who owned it earlier are selling and more newcomers are holding onto their Solana due to its promising performance in 2024, the balance between supply and demand seems advantageous for another price increase within the next few weeks. This assumption is backed by both fundamental analysis – which considers market trends and participant behavior – and technical analysis – a method that examines past price patterns and trends in Solana’s value to predict future rallies.

Currently, as I compose this text, Solana is being transacted at approximately $217, marking a 4% decrease over the past day. Despite this dip, there’s an optimistic perspective, with the Solana price maintaining itself above the $200 threshold. Based on one technical assessment, Solana could potentially hit a fresh peak record prior to Christmas. Additionally, a crypto expert pointed out an intriguing trend that might propel Solana towards a projected $4,000 price point.

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2024-12-16 01:11