Solana’s Confidence Grows Among Long-Term Investors – Is a Price Surge Imminent?

Recent insights from Glassnode reveal an increasing confidence among Solana (SOL) investors, marked by a notable rise in long-term asset retention. With SOL currently priced at $218.35, it continues to draw in holders who are anticipating higher valuations in the upcoming months.

According to Glassnode, 27% of Solana’s supply is owned by investors in the 6-12 month category, indicating a strong belief in the asset’s future potential. This trend suggests that many are preparing for a recovery or increase in 2024, positioning themselves accordingly.

“The share of locked assets held by long-term investors is on the rise, demonstrating the conviction of buyers ahead of the 2024 rally,” Glassnode stated.

Selling Pressure Continues to Decline

Notably, investors who acquired SOL during the 2022 market downturn have largely realized their profits. Glassnode indicates a significant reduction in the holdings of the 1-2 year group, which has fallen from 48% in June to below 5% at present.

This trend implies that sellers from the previous cycle have mostly exited, resulting in minimal immediate downward pressure on Solana’s price.

“Investors from the previous bull market have predominantly taken profits during this year’s rally. Currently, those looking to sell SOL have likely already completed their transactions,” the firm observed.

The reduction in selling activity aligns with the broader market sentiment for Solana, as long-term holders seem to be gearing up for the next potential rally.

Solana Price Outlook: Key Levels to Watch

However, Solana’s price movement is still limited by immediate technical resistance and bearish indicators. Currently trading at $218.35, SOL encounters significant downward trendline resistance at $227.28.

The emergence of a “three black crows” candlestick pattern underscores persistent bearish sentiment and the potential for further short-term declines.

• Immediate Support: $211.62
• Next Supports: $203.35 and $195.07
• Resistance Levels: $227.28 (trendline) and $234.80

The 50 EMA at $225.84 continues to serve as dynamic resistance, restricting upward momentum. Meanwhile, the Relative Strength Index (RSI) is at 39, indicating weak momentum and approaching oversold conditions.

If bulls succeed in breaking above the $227 level, Solana could aim for higher resistance levels, potentially reversing the current bearish trend.

Solana Price Outlook
Current: $218.35
Key Resistance: $227.28 (trendline), $234.80
Support Levels: $211.62, $203.35
RSI at 39.76 indicates weak momentum. A breakout above $227 could reverse bearish sentiment and elevate SOL. #Solana #Crypto pic.twitter.com/KuXPT9hsW7

— Arslan Ali (@forex_arslan) December 15, 2024

Why Investors Should Watch Solana

• 27% of SOL’s supply is locked by 6-12 month holders, indicating strong market conviction.
• 1-2 year holder activity has decreased, significantly lowering selling pressure.
• Technically, a break above $227.28 could pave the way toward $234.80 and beyond.

Conclusion

At this moment, all attention is focused on Solana’s capacity to uphold support at $211.62 and challenge the downward trendline, potentially setting the groundwork for a price increase in early 2024.

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