New data from Glassnode highlights growing confidence among Solana (SOL) investors, with a significant increase in long-term asset retention. At its current price of $218.35, SOL continues to attract holders expecting higher valuations in the months ahead.
Glassnode’s findings show that 27% of Solana’s supply is held by investors in the 6-12 month category, reflecting a strong belief in the asset’s potential. This behavior indicates that many anticipate a recovery or surge in 2024, positioning themselves accordingly.
“The proportion of locked assets held by long-term investors is increasing, showing the conviction of buyers ahead of the 2024 rally,” Glassnode reported.
Selling Pressure Continues to Decline
Interestingly, investors who accumulated SOL during the 2022 market downturn have already realized most of their profits. Glassnode reports a sharp decline in the holdings of the 1-2 year group, dropping from 48% in June to below 5% currently.
This suggests that sellers from the previous cycle have largely exited, leaving minimal immediate downward pressure on Solana’s price.
“Investors from the previous bull market largely took profits during this year’s rally. For now, those wanting to sell SOL have likely already done so,” the firm noted.
The diminishing selling activity aligns with Solana’s broader market sentiment, as long-term holders appear to be preparing for the next potential rally.
Solana Price Outlook: Key Levels to Watch
Solana’s price movement, however, remains constrained by immediate technical resistance and bearish indicators. Currently trading at $218.35, SOL faces significant downward trendline resistance at $227.28.
The presence of a “three black crows” candlestick pattern highlights sustained bearish sentiment and the possibility of further short-term declines.
Immediate Support: $211.62 Next Supports: $203.35 and $195.07 Resistance Levels: $227.28 (trendline) and $234.80The 50 EMA at $225.84 continues to act as dynamic resistance, limiting upside momentum. Meanwhile, the Relative Strength Index (RSI) sits at 39, signaling weak momentum and nearing oversold conditions.
If bulls manage to break above the $227 level, Solana could target higher resistances, potentially reversing the current bearish trend.
Why Investors Should Watch Solana
27% of SOL’s supply is locked by 6-12 month holders, showing strong market conviction. 1-2 year holder activity has declined, reducing selling pressure significantly. Technically, a break above $227.28 could open the path toward $234.80 and higher levels.Conclusion
For now, all eyes remain on Solana’s ability to maintain support at $211.62 and challenge the downward trendline, potentially setting the stage for a price surge in early 2024.
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