Solana [SOL] is expected to end the best month of the year in November. This week has been particularly interesting for the network, as it has achieved new milestones in multiple areas.
The Solana community is celebrating its native cryptocurrency hitting an all-time high. In the past 12 hours, SOL has continued its bullish momentum, reaching a peak of $264.39. This marks a new high for the cryptocurrency.
As of the time of writing, SOL is trading at $259.35, in the overbought territory. Its latest peak is a 69% increase from the lowest price of the month so far.
The cryptocurrency has formed some bearish divergences with the RSI. This could lead to a surge in selling pressure. However, there are no signs that significant selling pressure will reappear, primarily due to the overall bullish market, as most traders do not wish to go against the trend.
The demand for SOL has also surged to new highs. Its open interest (OI) reached a peak of $6.03 in the past 24 hours, the highest level in its entire history. This confirms that the demand for derivatives has significantly contributed to SOL's impressive price movement alongside spot demand.
OI indicates that SOL may be sensitive to short selling, especially at high price levels. In the past 24 hours, the short position ratio for SOL has been 50.63%, while the long position ratio was 49.37%. This may suggest a shift in market sentiment, with expectations of selling pressure.
Overview of Solana network activity
Some key performance indicators for Solana have also reached new highs. For example, its TVL surged to $11.08 billion in the past 24 hours, marking the highest TVL figure to date.
Solana's on-chain transaction volume soared to $14.81 billion in the past 24 hours. This represents the highest activity level the network has achieved in the past ten weeks.
Solana's highest on-chain transaction volume occurred on August 5, when the market crashed due to Japanese arbitrage trading unwinding.
Can SOL maintain its bullish momentum?
So far this month, market bullish sentiment has surged to new highs, but as of the time of writing, SOL is severely overbought. If the market maintains its current momentum, SOL's next major target is $300, which may be achieved soon.
However, a pullback is expected in the future, which may lead to significant profit-taking.
