Solana briefly joins $100B club: What this means for SOL prices

Solana briefly joins $100B club: What this means for SOL prices

November has proven to be a month of great advances for the crypto market, keeping enthusiasts on the edge of their seats with exciting achievements and strong momentum. Solana [SOL] was among the standout performers as it briefly touched the esteemed $100 billion valuation mark.

While the stay in this exclusive club was short-lived for SOL, its market capitalization did experience a slight retreat shortly after. As of the latest update, SOL’s market cap was valued at $97.87 billion, showing a modest 0.51% increase over the past 24 hours, based on data from CoinMarketCap.

Solana’s Incursion into the $100 Billion Range

Despite the momentary dip below $100 billion, SOL continued to ride on a bullish wave driven by positive market sentiments and anticipations surrounding the 2024 U.S. elections.

As of the latest data, SOL was exchanging hands at $207, reflecting a 0.45% uptick in the last 24 hours. Over the previous week, Solana, often dubbed as the “Ethereum killer,” showcased an impressive 27.82% surge in value.

Prior to this valuation, the altcoin had reached a three-year peak of $215 before undergoing a slight adjustment. Noteworthy is the fact that the bullish run also pushed SOL over the $200 milestone for the first time in half a year.

Despite this, the token still lagged behind its all-time high of $259, set in November 2021. Moreover, recent analyses from CryptoCrypto hinted at a looming correction threat, underscoring the potential challenges in reclaiming the peak.

Derivative Data Evaluation

In an interesting turn of events, the achievement of entering the $100 billion club was Solana’s second major milestone in November. Recently, its Open Interest [OI] skyrocketed to a record high of $4.28 billion, as reported by CryptoCrypto.

However, Coinglass data revealed that the OI had decreased by 5.18% at the time of the report, indicating a possible profit-taking phase or a shift in market sentiment.

Despite this, the trading volume surged by 55.38%, signaling increased market participation and a robust market pulse. The encouraging funding rate further supported the prevailing bullish sentiment, even though a long/short ratio of 0.95 hinted at a slight bearish inclination.

The conflicting signals from the derivatives pointed to a market that is both enthusiastic but also cautiously optimistic.

Solana Token Unlocking Situation

Meanwhile, the market is gearing up to witness an uptick in SOL’s supply. As per Tokenomist, 524,030 SOL tokens with a valuation of $110.25 million are slated for release over the coming week. This represents around 0.11% of Solana’s circulating supply.

While this supply increase is relatively minor, it is unlikely to exert substantial downward pressure on SOL’s price as long as market demand remains robust.

The remarkable achievements of Solana have not escaped the attention of major investors. Lookonchain highlighted that whales have been actively accumulating SOL, with one prominent whale address recently adding 7,500 SOL (equivalent to $1.57 million) to its portfolio.

Since October 22nd, this particular whale has amassed a total of 257,599 SOL, valued at approximately $54 million, indicating a strong interest among high-stake investors in the ongoing market trends.

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