Solana (SOL) has been in the news over the past few weeks, albeit for different reasons. The popular altcoin was one of the many beneficiaries of President Donald Trump's victory, rallying 67.69% in the three weeks since November 5, reaching an all-time high of $263.
However, after this price rally, it gradually readjusted to 15.13% over the past two weeks. Nevertheless, recent data on investor behavior shows considerable market optimism for the fifth largest cryptocurrency.
Solana's 'new' investors are motivated by a bullish future
In a Dec. 13 X post, blockchain analytics firm Glassnode shared an insightful report on Solana investor activity in recent weeks. According to Glassnode, Solana investors who entered the market a year or two ago are now selling a significant portion of their holdings.
The analysis team believes these investors likely bought Solana during the 2021 bull market and are now taking profits during the November price rally, with market share now down from 48% in June. The company explains that it has fallen to less than 5%.
While a decline in long-term holdings can indicate doubts about an asset's future, Glassnode believes that these recent sales are purely transactional and that investors should consider selling ahead of the next bull market exiting the market. We believe that there are many investors who are
Importantly, this selling pressure has been absorbed to a large extent by new Solana investors, who increased their market holdings to 24% during Solana's recent price rally over the past 6-12 months. Such a large investment at a rising price level shows that new holders are expressing confidence in Solana's long-term profitability, despite the current price decline.
VanEck predicts SOL to reach $500 in Q1 2025
In other news, prominent asset manager Van Eck has withdrawn his bullish prediction for Solana ahead of 2025. Matthew Siegel, Head of Digital Asset Research, and Patrick Bush, Senior Investment Analyst, jointly predicted that the general cryptocurrency market will continue to hold its own in their latest insights on digital assets. That bullish look heading into the new year.
In that regard, the digital asset is expected to reach its first market peak in the first quarter of 2025, with the price of Bitcoin reaching $180,000. During this uptrend, Solana is projected to trade at $500, indicating a potential upside of 124.21% from the asset's current price.
However, analysts at VanEck say Bitcoin is likely to experience a 30% revaluation following this surge, and that altcoins, including Solana, will likely see a roughly 60% revaluation as the market consolidates in the summer. It warns that it will record a decline.
As of this writing, Solana continues to trade at $227, reflecting an increase of 0.34% over the past day. Meanwhile, the trading volume of the asset decreased by 14.28% and its value was $4.12 billion.
