Solana [SOL] is poised to wrap up November as its most successful month of the year. This week has been particularly eventful for the network, achieving new milestones across various fronts.
The Solana community is rejoicing over a fresh all-time high (ATH) for its native digital currency. Within the last 12 hours, SOL continued its bullish run, reaching a peak of $264.39. This milestone marked a new record for the cryptocurrency.
At the time of writing, SOL was trading at $259.35 and was situated in the overbought zone. Its latest surge represented a 69% increase from its lowest point earlier this month.
The digital asset exhibited some bearish divergence with the RSI, potentially prompting an uptick in selling pressure. Yet, there were no clear indications of a resurgence in significant selling activity, mainly due to the prevalent bullish market sentiment discouraging contrarian trades.
Demand for SOL also surged to unprecedented levels, with its Open Interest (OI) peaking at $6.03 in the past 24 hours, marking the highest OI level in its history. This underscored the substantial contribution from derivative demand to SOL’s impressive price performance in addition to spot demand.
The OI data hinted at SOL’s susceptibility to short selling, especially at elevated price levels. Over the last day, SOL shorts were dominant at 50.63%, outweighing long positions at 49.37%. This shift could imply changing sentiment and anticipations for increased selling pressure.
Review of Solana Network Activity
Solana also witnessed record highs in several key performance indicators. For instance, its Total Value Locked (TVL) surged to $11.08 billion in the past 24 hours, marking its highest TVL value to date.
The on-chain volume on Solana peaked at $14.81 billion over the last day, representing the network’s highest activity level in the past ten weeks.
The all-time high on-chain volume for Solana was recorded on August 5th, coinciding with a market crash triggered by the unwinding of the Japanese carry trade.
Can SOL Sustain its Bullish Run?
The ongoing optimistic market sentiment has propelled SOL to new highs this month, although it was already deeply overbought at the time of reporting. The next major milestone for SOL stands at $300, which could be attained shortly if the current momentum persists.
Nevertheless, retracements are anticipated in the future that could lead to significant profit-taking.