Solana Investors Stay Firm As Selling Pressure Eases – Details
Solana (SOL) has been in the news over the past few weeks, albeit for different reasons. The popular altcoin was one of many contributors to President Donald Trump’s victory, Up 67.69% in three weeks After November 5, it reached a new record of $263.
However, after the price surge Gradual correction It has increased by 15.13% in the past two weeks. Nonetheless, recent data on investor behavior shows significant market optimism for the fifth-largest cryptocurrency.
Solana ‘new’ investors confident in bullish future
in a X was released on December 13, Blockchain analytics firm Glassnode has shared an insightful report on Solana investor activity in recent weeks. Solana investors who entered the market a year or two ago have now sold off most of their shares, according to Glassnode.
The analysis team explains that these investors likely bought Solana during the 2021 bull market and took profits during the price increase in November, reducing its market share from 48% in June to less than 5% currently.
While a decline in long-term holdings can sometimes indicate doubts about an asset’s future potential, Glassnode believes these recent sales are purely transactional, with most investors hoping to sell before the next bull run now exiting the market.
Importantly, this selling pressure has been largely absorbed by new Solana investors over the past 6-12 months, who increased their market holdings to 24% during Solana’s most recent price surge. Making such a large investment amid rising price levels shows that new holders have confidence in Solana’s long-term profitability despite the current price decline.
VanEck predicts SOL will hit $500 in Q1 2025
In other news, prominent asset manager VanEck dropped its optimistic forecast for Solana through 2025. Latest insights on digital assetsDigital asset research director Matthew Sigel and senior investment analyst Patrick Bush jointly predict that the overall cryptocurrency market will remain bullish in the new year.
At this point, the digital asset will reach its first market peak in the first quarter of 2025, with the price of Bitcoin reaching $180,000. During this current rally, Solana is expected to trade at $500, indicating a potential gain of 124.21% from the asset’s current price.
However, VanEck analysts warned that as the market enters a consolidation phase over the summer, Bitcoin’s price rise could lead to a 30% price correction, while altcoins including Solana will see a decline of approximately 60%.
As of this writing, Solana continues to trade at $227, up 0.34% over the past day. At the same time, the asset’s trading volume fell by 14.28%, with a value of $4.12 billion.
