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- SOL jumped to a new all-time high as the bullish sentiment extended its stay.
- Solana registered a new all-time high in TVL and Open Interest.
Solana [SOL] is on track to conclude November as its best month this year. This week has particularly been interesting for the network because it achieved new milestones in multiple areas.
The Solana community is celebrating a new all-time high(ATH) for its native cryptocurrency. In the last 12 hours, SOL extended its bullish momentum, reaching as high as $264.39. This marked a new ATH for the cryptocurrency.
SOL exchanged hands at $259.35, at press time, and was in the overbought territory. Its latest peak represented a 69% rally from its lowest price point so far this month.
Source: TradingView
The cryptocurrency formed some bearish divergence with the RSI. This may influence a surge in the selling pressure. However, there were no signs of a resurgence of major sell pressure, largely because the market has been overall bullish and most traders do not want to go against the grain.
Demand for SOL also soared to new highs. Its Open Interest(OI) peaked at $6.03 in the last 24 hours, which was the highest level observed in its entire history. This confirmed that demand from the derivatives also contributed heavily to SOL’s impressive price action alongside spot demand.
Source: Coinglass
The OI suggested SOL may be sensitive 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 signal shifting sentiment and anticipation of selling pressure.
Solana network activity recap
Solana also experienced new highs in some of its key performance metrics. 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 soared as high as $14.81 billion in the last 24 hours. This was the highest level of activity that the network has achieved in the last ten weeks.
Solana’s highest on-chain volume occurred on the 5th of August, when the market crashed due to the Japanese carry trade unwinding.
Realistic or not, here’s SOL market cap in BTC’s terms
Can SOL maintain its bullish momentum?
The bullish market sentiment so far this month has pushed to new highs, but SOL was already deeply overbought at the time of writing. SOL’s next major target is $300 which may happen soon if the market maintains the current momentum.
However, pullbacks are expected down the road, which could result in significant profit-taking.
