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In a recent analysis, crypto analyst Henrik Zeberg shared his optimistic outlook on Solana (SOL), the fifth-largest cryptocurrency by market capitalization.
According to Zeberg, Solana remains in consolidation after reaching new all-time highs last month. This phase is normal around major market tops as the asset gathers momentum for its next upward move.
Zeberg indicated that this consolidation is a healthy and necessary process for Solana. It allows the cryptocurrency to build the strength needed to push higher. He believes that this period of consolidation is a precursor to Solana continuing its upward trajectory.
"Solana is still consolidating after breaking ATHs. This is normal around major tops as it needs to gather force to move higher," Zeberg stated.
#Solana is still consolidating after breaking ATHs.
— Henrik Zeberg (@HenrikZeberg) December 16, 2024
This is normal around major tops as it needs to gather force to move higher.
We should soon see #SOL continuing higher towards new ATHs - reaching its final target in a not too distant future.
This is my target and the…
"We should soon see SOL continuing higher toward new ATHs — reaching its final target in a not-too-distant future," Zeberg added, expressing optimism in Solana's potential to soar higher.
Solana breakout? What analysts and on-chain data suggest
At the time of writing, SOL was up 0.35% in the last 24 hours to $219. Solana's price reached its current all-time high of $263 on Nov. 23 and is currently down nearly 17% from this peak.
In a tweet last week, the cofounders of Glassnode who go by "Negentropic" on X suggested that SOL might be eyeing a breakout. SOL hit the marked zone and rebounded toward $230. "Negentropic" predicts that if the SOL price surpasses $235 on a daily time frame, it could break the price compression and aim for the previous high of $264.
Meanwhile, key signals such as the Daily RSI remain neutral, implying that the SOL price might still be far from overbought territory, which is favorable for a move higher. If SOL takes off, Negentropic suggests that JUP and WIF could gain traction.
Glassnode, in a recent tweet, indicated that Solana investors are hodling firm, expecting higher prices. Long-term holders’ share of wealth locked in the network is increasing. The 6-12 month cohort now holds 27% of the supply, showing conviction from 2024 rally buyers.
Meanwhile, the 1-2 year cohort has steadily declined, from 48% in June to just below 5%. These were earlier bull run investors who profited heavily during this year's surge. This implies that, for now, those who wished to sell SOL have likely sold.