Solana's investor base is showing strong confidence as the network transitions to new long-term holders. Recent on-chain data indicates that many Solana addresses are moving into the long-term holder category, reflecting a strong conviction among investors who entered the market during the recent rally.
Despite recent price corrections, these investors are committed to holding their assets and anticipating further price appreciation. The 6-12 month holding cohort has increased its stake to 27% of the total supply, indicating a shift towards a more optimistic investor base. On the other hand, the 1-2 year holding cohort has seen a significant decline, suggesting that profit-taking activities have largely concluded.
This transition from older long-term holders to newer participants is significant for the overall sentiment surrounding Solana's price. With fewer previous-cycle holders actively selling, the cryptocurrency is experiencing reduced selling pressure, setting the stage for potential price growth.
Technical analyses suggest that Solana is still on track to reach a new all-time high before the end of the year, with projections suggesting a potential rise to the $4,000 level. The combination of strong investor sentiment and favorable technical indicators positions Solana as a cryptocurrency to watch in the near future.