contributor
Posted:
- SOL jumped to a new all-time high as bullish sentiment extended its stay.
- Solana registered a new all-time record in TVL and Open Interest.
Solana [SOL] is on track to end November as the best month of this year. This week was particularly interesting for the network as it reached new milestones in several areas.
The Solana community is celebrating a new all-time record (ATH) for its native cryptocurrency. Over the past 12 hours, SOL has extended its bullish momentum to $264.39. This marked a new ATH for the cryptocurrency.
SOL was exchanging hands at $259.35, at the time of writing, and was in overbought territory. The latest spike represented a 69% rally from the lowest price level so far this month.
Source: TradingView
The cryptocurrency formed a bearish divergence with the RSI. This can influence an increase in selling pressure. However, there were no signs of a revival of the heavy selling pressure, largely because the market has been generally bullish and most traders do not want to go against the flow.
Demand for SOL also rose to new highs. The Open Interest (OI) peaked at $6.03 in the last 24 hours, the highest level in its entire history. This confirmed that derivatives demand, in addition to spot demand, was also a major contributor to SOL’s impressive price action.
Source: Coinglass
The OI suggested that SOL may be susceptible to short selling, especially at high price levels. In the last 24 hours, SOL shorts were higher at 50.63%, compared to longs at 49.37%. This could indicate changing sentiment and anticipation of selling pressure.
Summary of Solana’s networking activities
Solana also saw new highs in some of his key performance metrics. For example, the TVL rose to $11.08 billion in the last 24 hours, which is the highest TVL figure to date.
Source: DeFiLlama
Solana’s on-chain volume rose to $14.81 billion in the past 24 hours. This was the highest level of activity the network has reached in the past ten weeks.
Solana’s highest volume on chain occurred on August 5, when the market crashed due to the expiration of the Japanese carry trade.
Realistic or not, here is the market cap of SOL in terms of BTC
Can SOL maintain its bullish momentum?
Bullish market sentiment so far this month has reached new highs, but SOL was already deeply overbought at the time of writing. SOL’s next big target is $300, which could happen soon if the market maintains current momentum.
However, pullbacks are expected in the future, which could lead to significant profit-taking.
