On December 22, 2024, Solana (SOL) experienced a significant price decline of 17.13%, amidst a tumultuous week for the cryptocurrency market, according to CoinMarketCap. This drop follows a peak price of $263.83 reached after the US Presidential elections in November 2024.
Despite this setback, analysts at Glassnode remain optimistic about Solana's potential for recovery, noting that the token has seen a positive net capital inflow since early September 2023, peaking at $776 million per day.
Glassnode's analysis reveals that the majority of profit-taking has come from coins held for short durations, indicating strong interest from both long and short-term investors. The Market Value to Realized Value (MVRV) ratio analysis suggests that while Solana is currently in a heated market, it is not yet at risk of a significant downturn.
Since its price crash to $9.64 in November 2022, Solana has surged over 2,143%, outperforming Bitcoin and Ethereum on 344 out of 727 market days since the FTX exchange collapse. As of now, Solana is trading at $194.58, reflecting a slight daily loss of 0.50%, but with a notable trading volume increase of 18.94%, totaling $9.94 billion.