November has been an exciting month for the cryptocurrency market, with Solana [SOL] achieving a significant milestone by briefly joining the exclusive $100 billion club, delighting crypto enthusiasts.
Although SOL’s time in this prestigious club was short-lived, its market capitalization experienced a slight retreat, currently standing at $97.87 billion, showing a 0.51% increase in the last 24 hours as per CoinMarketCap data at the time of this publication.
Membership in the $100 Billion Club
Despite dipping below the $100 billion mark, SOL continued to ride a strong bullish trend fueled by positive market sentiment and anticipation surrounding the 2024 U.S. elections.
As of now, SOL is trading at $207, indicating a 0.45% rise in the last 24 hours. Over the past week, Solana, often referred to as the “Ethereum killer,” has seen a notable 27.82% increase.
Prior to the current price, the altcoin reached a three-year high of $215 before making a slight adjustment. Noteworthy is that the recent bull rally propelled SOL above the $200 level for the first time in half a year.
However, it still remains 20% below its peak of $259 reached in November 2021. Additionally, recent analysis by CryptoCrypto pointed towards a potential correction, making reclaiming the all-time high a challenging task.
Analysis of Derivative Data
Interestingly, hitting the $100 billion club marks the second milestone Solana reached this month, with its Open Interest [OI] setting a new record of $4.28 billion, reported by CryptoCrypto.
However, Coinglass data suggests that OI has since decreased by 5.18% at the time of reporting, indicating potential profit-taking activities or a shift in market sentiment.
Despite this, trading volume surged by 55.38%, signaling increased market participation and robust momentum. The positive funding rate further solidified the prevailing bullish sentiment, while a long/short ratio of 0.95 implied a slight bearish bias.
The mixed signals from derivatives reflect a market characterized by both bullish enthusiasm and a sense of caution.
Upcoming Solana Token Unlock
In the coming days, the market is expected to witness an uptick in SOL’s supply. As per Tokenomist, 524,030 SOL tokens, valued at $110.25 million, are set for release within the next week, constituting around 0.11% of Solana’s circulating supply.
Although this increase in supply is relatively small, it is unlikely to exert significant downward pressure on SOL’s price as long as market demand remains robust.
Major investors have taken notice of Solana’s achievements, with Lookonchain reporting active accumulation of SOL by whales. For example, a prominent whale address recently included 7,500 SOL (worth $1.57 million) in its holdings.
Since October 22nd, this whale has amassed a total of 257,599 SOL, valued at around $54 million, indicating a strong interest among large stakeholders in the current market trends.