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- Solana’s Open Interest has reached a new ATH.
- SOL is up 45.18% over the past month, hitting an eight-month high.
For the first time since July Solana [SOL] has been trading above the rising trend line. With Bitcoin [BTC] As they reach a new ATH of $79,000, most altcoins have followed suit.
As such, Solana has experienced strong upside momentum over the past month to reach an eight-month high.
In fact, at the time of writing, Solana was trading at $205. This marked an increase of 25.42% in the past week. Similarly, the altcoin has risen 45.18% on the monthly charts.
Recent market conditions show that buyers are in control, while the bears are slowly losing momentum. This situation is reflected in a strong increase in Solana’s future Open Interest.
Solana Open Interest reaches new ATH
Source: Coinglass
According to Coinglass data, Solana’s Open Interest reached a new ATH of $4.28 billion at the time of writing. This represented an increase of 42.19% compared to the previous week.
Such an increase in Open Interest indicates growing confidence among traders and investors as more and more contracts are opened. This momentum plays a crucial role in attracting more buyers, leading to further price increases.
Source: Coinglass
This confidence among investors is further 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 the price increase.
Source: Santiment
This demand for long positions is further supported by a positive DyDx exchange Funding Rate.
This suggests that holders of long positions are willing to pay a fee to shorts to maintain their positions during the market downturn.
Source: Coinglass
This phenomenon can be seen with higher liquidations for holders of short positions compared to long positions. This means that traders are willing to hold their future bets while shorts are forcibly liquidated.
Impact on SOL?
Increased accumulation and buying activity helps drive prices higher. This has been true for Solana over the past week as prices have also skyrocketed against altcoin Open Interest.
Read Solana’s [SOL] Price forecast 2024–2025
Simply put, these record-breaking open interests are playing a crucial role in the recent price rally.
Therefore, if long demand and bullish sentiment continue, SOL will see further gains at $246. A move above this level will cause the altcoin to reach a new ATH.
