Recent insights from Glassnode, a leading market analysis firm, reveal that Solana (SOL) holders are maintaining their positions, expecting a rise in prices. This trend underscores the confidence investors have in Solana’s market trajectory, suggesting optimism among the community.
What Drives Long-Term Investor Confidence?
Glassnode highlighted on platform X that a considerable number of SOL tokens are secured by long-term investors. This retention indicates a belief that the bullish phase for Solana will persist, as these investors opt to hold rather than sell their assets.
“The rising percentage of long-term holdings illustrates the steadfast belief of these investors. Approximately 27% of the total supply is held by those who have kept their assets for over six months, indicating strong confidence ahead of the anticipated market rally in 2024.”
How Has Selling Pressure Changed?
According to Glassnode, many investors who acquired SOL towards the end of the 2022 market cycle have already disposed of their assets, leading to reduced selling pressure. The current distribution of holdings among these previous investors reflects a notable decline in active selling.
“The cohort holding for 1-2 years has plummeted from 48% in June to nearly 5% now. Most from the previous bull market have capitalized on their investments during the recent rally.”
Key insights from Glassnode’s analysis include:
- Long-term holders are significantly increasing their shares of SOL.
- Current selling pressure is low, indicating fewer active sellers.
- A potential rally could see SOL targeting its past high of $264, provided it surpasses $235 in value.
Currently priced at $224, with a slight decline of 3% over the last day, Solana’s support from its long-term investors could play a crucial role in influencing its price movements in the near future, as they remain vigilant about market fluctuations.