After a significant period, Solana [SOL] has surpassed the ascending trendline, a milestone not observed since July. Following Bitcoin’s [BTC] surge to reach a new all-time high of $79k, many alternative coins have experienced a similar uptrend.
Consequently, in the last month, Solana has demonstrated a powerful upward trend, reaching its peak in 8 months.
At the time of writing, Solana was trading at $205, showcasing a remarkable 25.42% increase over the previous week. Furthermore, the altcoin has experienced a notable 45.18% rise on a monthly basis.
The current market dynamics signify a dominance of buyers with a gradual weakening of bearish sentiment. This shift is evident in the substantial increase in Solana’s Open Interest for the future market.
Record High Open Interest for Solana
Coinglass data reveals that Solana’s Open Interest has surged to a new all-time high of $4.28 billion by the time of reporting, indicating a significant 42.19% rise over the past week.
Such a surge in Open Interest reflects a growing investor and trader confidence, leading to an increase in opened contracts. This surge plays a pivotal role in attracting more buyers to drive further price appreciation.
The prevalent investor confidence is underscored by the prevailing predominance of long positions in the market.
According to data from Coinglass, revealed by the Long/Short Ratio, long position holders have taken the lead in the market, implying a strong belief in price appreciation among most investors.
This inclination towards long positions is further bolstered by a positive Funding Rate on the DyDx exchange.
This positive rate indicates that holders of long positions are willing to pay a premium to short sellers to maintain their positions in times of market decline.
Notably, there is a higher rate of liquidations for short position holders than long positions, signaling a readiness among traders to uphold their future bets, while short positions are being forcefully liquidated.
Effects on SOL?
The heightened accumulation and buying activities contribute significantly to driving prices upward. This has been evident with Solana in the past week, as prices surged in correlation with the altcoin’s Open Interest.
In essence, these unprecedented levels of Open Interest are pivotal in propelling the recent price rally.
Thus, if the demand for long positions and the bullish sentiment persist, SOL is poised to witness further growth towards $246. Surpassing this level will lead the altcoin to a new all-time high.