Solana (SOL) has been in the news over the last few weeks, albeit for different reasons. The popular altcoin was one of the many benefactors of a Donald Trump presidential victory, rising by 67.69% in three weeks after November 5 to reach a new-all time of $263.
However, this price surge has been followed by a gradual recorrection of 15.13% in the last two weeks. Albeit, recent data on investors’ behavior shows significant market optimism on the fifth-largest cryptocurrency.
Solana ‘New’ Investors Buoyant On Bullish Future
In an X post on December 13, blockchain analytics company Glassnode shared an insightful report on Solana investors’ activity in recent weeks. According to Glassnode, Solana investors who entered the market 1-2 years ago have now offloaded significant portions of their holdings.
The analytics team explains that these investors likely bought Solana during its 2021 bull run and have now taken profits during the price rally in November, reducing their market share from 48% in June to below 5% currently.
While a drop in long-term holdings can sometimes signal doubts about an asset’s future potential, Glassnode views these recent sales as purely transactional with most investors looking to sell ahead of the next bull run now exiting the market.
Importantly, this selling pressure has been absorbed to a significant extent by new Solana investors of the last 6-12 months who increased their market holdings to 24% during Solana’s latest price surge. Such massive investment at rising price levels indicates confidence among new holders in Solana’s long-term profitability despite its current price dip.
VanEck Predicts SOL To Reach $500 In Q1 2025
In other news, prominent asset manager VanEck has dropped a bullish prediction for Solana ahead of 2025. In their latest insight on digital assets, Head of Digital Assets Research Matthew Sigel, and Senior Investment Analyst Patrick Bush have jointly forecasted the general crypto market to maintain its bullish form going into the new year.
On that note, the digital assets will attain their first market peak in Q1 2025 with Bitcoin attaining a price of $180,000. During this rally, Solana is projected to trade at $500, indicating a potential 124.21% gain on the asset’s current price.
However, VanEck analysts warn that this surge will likely be followed by Bitcoin experiencing a 30% price recorrection while altcoins including Solana record declines of about 60% as the market enters consolidation in summer.
At the time of writing, Solana continues to trade at $227 reflecting a 0.34% gain in the past day. Meanwhile, the asset’s trading volume is down by 14.28% and valued at $4.12 billion.
Source link
Semilore Faleti
https://www.newsbtc.com/news/solana/solana-investors-stay-firm-as-selling-pressure-eases-details/
2024-12-14 18:00:29
