Posted: November 11, 2024

• Solana’s Open Interest has hit a new ATH.
• SOL has surged by 45.18% over the past month to hit an 8-month high.

For the first time since July, Solana [SOL] has traded above the ascending trendline. With Bitcoin [BTC] surging to hit a new ATH of $79k, most altcoins have followed suit.

As such, over the past month, Solana has experienced a strong upward momentum to reach an 8-month high.

In fact, as of this writing, Solana was trading at $205. This marked a 25.42% upsurge over the past week. Equally, the altcoin has gained by 45.18% on monthly charts.

The recent market condition shows that buyers are in control while bears are slowly losing momentum. This condition is evidenced by a surge in Solana’s future Open Interest.

According to Coinglass data, Solana’s Open Interest reached a new ATH of $4.28 billion as of press time. This marked a 42.19% increase over the past week.

Such a surge in Open Interest indicates growing confidence among traders and investors with more contracts getting opened. This momentum plays a crucial role in attracting more buyers leading to further price increase.

This confidence among investors is further evidenced by the fact that most investors are taking long positions.

According to Coinglass data, as indicated by the Long/Short Ratio, long position holders are dominating the market. This means that most investors are betting on the price increase.

This demand for long positions is further supported by a positive DyDx exchange Funding Rate.

This suggests that long position holders are willing to pay a fee to shorts to hold their positions during the market downturn.

This phenomenon can be seen with higher liquidations for short positions holders compared to longs. This implies that traders are willing to keep their future bets while shorts are forcefully liquidated.

Impact on SOL?

Increased accumulation and buying activities help to drive prices up. This is true with Solana over the past week, as prices have also surged relative to altcoin’s Open Interest.

Read Solana’s [SOL] Price Prediction 2024–2025

Simply put, these record-breaking Open Interests are playing a crucial role in the recent price rally.

Therefore, if the demand for longs and bullish sentiment continues to hold, SOL will see further gains reaching $246. A move above this level will see the altcoin hit a new ATH.