During the past 11 days, Solana [SOL] has experienced a notable uptrend in its trading patterns. After reaching a low of $155 earlier this month, the altcoin surged to a peak of $225 within a few weeks, marking a substantial 45.15% increase.
On the daily charts, SOL saw a 4.67% increase. Additionally, the altcoin displayed positive movements on both the weekly and monthly charts, witnessing gains of 9.85% and 44.46%, respectively.
The recent market conditions have led to discussions about the reasons behind this surge. According to analysis by CryptoCrypto, one of the contributing factors to this uptrend is the growing demand and interest in SOL.
Solana Registers a New All-Time High in Open Interest
The increasing demand and interest for the altcoin are evident as investors continue to initiate new positions in the market.
Data from Coinglass indicates that Solana’s Futures Open Interest surged in the past 24 hours, reaching a new all-time high on the charts.
For context, the altcoin’s Open Interest reached a peak of $4.68 billion. This spike in Open Interest highlights a heightened demand for the altcoin as fresh investors establish new positions, while existing ones maintain their trades.
A higher Open Interest typically suggests growing investor confidence in an asset, particularly as they anticipate further upward movements in its value.
With the overall crypto market on the rise and the total market capitalization surpassing $3 trillion, holders of Solana see promising opportunities in the current bull market. This encourages them to retain their positions and attract new investors.
Analysis of SOL’s Market Trends
Recent trends indicate a rising demand for Solana, especially in terms of long positions. The preference for Futures long positions is evident as long position holders dominate the market.
On the daily chart, Solana’s perpetuals (long/short) reflect that long positions account for 82.56%, while short positions make up 17.44%.
This dominance of long positions signifies that a majority of investors are speculating on the altcoin’s price to increase.
The demand for long positions is further strengthened by a positive DyDx exchange funding rate, which has consistently remained favorable in the past week. This suggests that investors are willing to pay fees to retain their positions during market downturns, indicating a sense of confidence among market participants.
Future Prospects for the Altcoin
Given Solana’s record high Open Interest, it is evident that the market sentiment is currently very optimistic. Most investors are bullish and anticipate a price surge, especially considering the prevalence of long positions in the market.
Under these favorable circumstances, SOL may witness further advancements on the price charts. A potential scenario could involve SOL reclaiming the $222 resistance level, with a breakout possibly leading the altcoin towards the next resistance point around $242.