Solana [SOL] is set to end November as its most successful month of the year. This week has been especially noteworthy for the platform, as it reached new milestones across various aspects.
The Solana community is excited about a fresh all-time high (ATH) for its native digital currency. Within the last 12 hours, SOL continued its upward trend, surging to a peak of $264.39. This milestone marked a new ATH for the coin.
At the time of writing, SOL was trading at $259.35 and was categorized as overbought. Its latest peak represented a 69% increase from its lowest price point this month.
There was some bearish divergence observed in the cryptocurrency’s Relative Strength Index (RSI), potentially leading to increased selling pressure. Nevertheless, the overall bullish market sentiment has subdued any significant selling pressure, as most traders prefer to align with the prevailing trend.
Interest in SOL has reached unprecedented levels. The Open Interest (OI) hit $6.03 in the past 24 hours, setting a new all-time high. This surge in OI indicates that demand from derivative markets has significantly contributed to SOL’s impressive price performance alongside spot market demand.
The OI data suggests that SOL could be vulnerable to short selling, especially at higher price levels. In the recent 24-hour period, short positions for SOL stood at 50.63%, slightly outweighing long positions at 49.37%. This shift in positioning may indicate a change in sentiment and expectations of forthcoming selling pressure.
Review of Solana Network Activity
Solana has also witnessed new milestones in various key performance metrics. For instance, its Total Value Locked (TVL) skyrocketed to $11.08 billion in the past day, marking a record high for the platform.
The on-chain transaction volume for Solana surged to $14.81 billion within the last 24 hours, representing the highest activity level recorded on the network in the past ten weeks.
The peak on-chain volume for Solana was recorded on August 5th during a market downturn triggered by the unwinding of the Japanese carry trade.
Is SOL’s Bullish Momentum Sustainable?
The prevailing bullish sentiment this month has propelled SOL to new heights, albeit being heavily overbought at the present moment. The next significant target for SOL is $300, which could materialize soon if the current momentum persists.
Nevertheless, corrections are anticipated in the future, potentially triggering substantial profit-taking activities.