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Published:
- SOL hit a new all-time high as bullish sentiment extended its stay.
- Solana recorded a new all-time high in TVL and Open Interest.
Solana (SOL) is on track to conclude that November will be its best month this year. This week was particularly interesting for the network as it reached new milestones in multiple areas.
The Solana community is celebrating a new all-time high (ATH) for its native cryptocurrency. Over the past 12 hours, SOL extended its bullish momentum, reaching $264.39. This marked a new ATH for the cryptocurrency.
SOL was trading at $259.35, at press time, and was in overbought territory. Its latest high represents a 69% rise from its lowest price so far this month.
Source: TradingView
The cryptocurrency has formed a bearish divergence with the RSI. This can influence an increase in selling pressure. However, there have been no signs of a resurgence of significant selling pressure, largely because the market has been bullish overall and most traders don’t want to go against the tide.
Demand for SOL has also reached new heights. Its Open Interest (OI) peaked at $6.03 over the past 24 hours, the highest level seen in its history. This confirmed that derivatives demand also strongly contributed to SOL’s impressive price action alongside spot demand.
Source: Coinglass
The IO suggested that SOL could be susceptible to short selling, particularly at high price levels. Over the past 24 hours, SOL short positions were higher at 50.63%, compared to long positions at 49.37%. This could signal a change in sentiment and an anticipation of selling pressure.
Summary of Solana network activity
Solana also reached new highs in some of its key performance indicators. For example, its TVL soared to $11.08 billion in the last 24 hours, marking its highest TVL figure so far.
Source: DeFiLlama
Solana’s on-chain volume surged as high as $14.81 billion in the last 24 hours. This is the highest level of activity the network has reached in the last ten weeks.
Solana’s highest on-chain volume occurred on August 5, when the market crashed due to the end of the Japanese carry trade.
Realistic or not, here is the market capitalization 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 major target is $300, which could happen soon if the market maintains the current momentum.
However, declines are expected over time, which could lead to significant profit-taking.
