Solana Investors Stand Firm As Selling Pressure Eases
Solana (SOL) has been in the headlines for several reasons in recent weeks. The cryptocurrency rose 67.69% in three weeks following November 5 to a record $263.
A 15.13 percent retracement in the previous two weeks followed this price increase. However, recent investor data suggests market optimism on the fifth-largest cryptocurrency.
Solana ‘New’ Investors Confident on Future
In an X post on December 13, blockchain analytics startup Glassnode revealed a recent Solana investor report. Glassnode reports that Solana investors who joined the market 1-2 years ago had sold major chunks of their assets.
The analytics team believes these investors purchased Solana during its 2021 bull run and took gains following the November price surge, decreasing their market share from 48% in June to below 5%.
A reduction in long-term ownership might reflect reservations about an asset's future potential, but Glassnode sees these recent sales as transactional, with most investors selling before of the next bull run.
The past 6-12 months' new Solana investors raised their market holdings to 24% during Solana's current price spike, absorbing most of this selling pressure. New investors' large investment at increasing prices shows confidence in Solana's long-term profitability despite its price drop.
VanEck predicts Solana will be bullish in 2025. Head of Digital Assets Research Matthew Sigel and Senior Investment Analyst Patrick Bush expect the crypto market to remain optimistic in the new year.
In Q1 2025, Bitcoin will reach $180,000, the first market top for digital assets. Solana might rise 124.21% to $500 with this surge.
VanEck analysts predict a 30% price recorrection for Bitcoin and 60% falls for altcoins like Solana when the market consolidates in July.
Solana is now trading at $227, up 0.34% today. The asset's trading volume is down 14.28% to $4.12 billion.
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