Solana Investors Hold Firm as Selling Pressure Decreases

Solana (SOL), one of the most discussed altcoins, has made headlines in recent weeks, albeit for different reasons. Following Donald Trump’s victory on November 5, SOL saw a massive price increase of 67.69% in just three weeks, reaching a new record of $263. However, this peak was followed by a correction of 15.13% in the subsequent two weeks.

Optimism Among New Investors

Despite this correction, recent data from blockchain analysis company Glassnode shows remarkable optimism among investors. In an X-post on December 13, Glassnode highlighted that investors who entered 1-2 years ago have sold a large portion of their holdings, possibly taking profits after the 2021 bull run. Their market share has dropped from 48% in June to less than 5% now.

Glassnode, however, does not describe these sales as a sign of desperation but rather as transactional activity preceding a new bull run. These sales have been primarily absorbed by new investors from the past 6-12 months, who have increased their stake in Solana to 24%, indicating strong confidence in Solana’s long-term value, despite the recent price drop.

VanEck Predicts Rise to $500

As we highlighted earlier this week, leading asset manager VanEck has published an optimistic forecast for Solana in 2025. According to Head of Digital Assets Research Matthew Sigel and senior investment analyst Patrick Bush, the crypto market will see its first market peak in Q1 2025, with Bitcoin (BTC) hitting $180,000. In this scenario, Solana could reach a price of $500, suggesting a potential return of 124.21% on the current price.

However, they also warn of a possible price correction of 30% for Bitcoin and 60% for altcoins like Solana after this peak, as the market is expected to consolidate in the summer.

Current Market Status

At the time of writing, Solana is trading at $227, reflecting a daily increase of 0.34%. The trading volume has dropped by 14.28% to $4.12 billion, indicating some normalization after the recent volatility.

These developments paint a complex but intriguing picture for Solana, with the dynamics of old and new investors and VanEck’s market forecasts suggesting an exciting future for the altcoin, despite the current corrections.