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Published:
- Solana’s open interest has reached a new ATH.
- SOL surged 45.18% over the past month to reach its highest level in 8 months.
For the first time since July, Solana (SOL) is trading above the ascending trendline. As Bitcoin (BTC) hits a new ATH of $79,000, most altcoins have followed suit.
So, over the past month, Solana has seen strong bullish momentum to reach an 8-month high.
In fact, at the time of writing, Solana was trading at $205. This represents an increase of 25.42% over the past week. Likewise, the altcoin gained 45.18% on the monthly charts.
Recent market conditions show that the buyers are in control while the bears are slowly losing momentum. This condition is evidenced by an increase in Solana’s future open interest.
Solana Open Interest Hits New ATH
Source: Coinglass
According to Coinglass data, Solana’s open interest reached a new ATH of $4.28 billion at press time. This represents an increase of 42.19% over the past week.
Such an increase in open interest indicates growing confidence among traders and investors with more contracts opening. This dynamic plays a crucial role in attracting more buyers, leading to further price increases.
Source: Coinglass
This investor confidence is also evidenced by the fact that most investors take long positions.
According to Coinglass data, as indicated by the Long/Short ratio, long position holders dominate the market. This means that most investors are betting on prices rising.
Source: Santiment
This demand for long positions is further supported by a positive DyDx FX funding rate.
This suggests that long position holders are willing to pay fees to short positions to maintain their positions during the market downturn.
Source: Coinglass
This phenomenon can be observed with higher liquidations for short position holders compared to long position holders. This implies that traders are willing to hold on to their future bets while shorts are forcibly liquidated.
Impact on SOL?
Increased hoarding and purchasing activities contribute to pushing up prices. This is true with Solana over the past week as prices have also increased against the altcoin Open Interest.
Read Solana (SOL) Price Prediction 2024-2025
Simply put, this record open interest plays a crucial role in the recent price rally.
Therefore, if long demand and bullish sentiment continue to hold, SOL will see further gains reaching $246. A move above this level will see the altcoin reach a new ATH.
