In the last week, the price of Solana has increased by 60%, and on Monday, it broke beyond the $248 barrier.
In the wake of optimistic predictions for VanEck's SOL ETF, BONK, the biggest memecoin in Solana, revealed its intention to burn one trillion tokens in the next six weeks.
With $2.9 billion in capital inflows since November 4, Solana's open interest has now surpassed $5 billion.
On Monday, November 18, the price of Solana (SOL) surged 60% in the past 14 days, reaching a new monthly time frame top of $248. As bulls aim for fresh all-time highs, the patterns in the derivatives market indicate that there may be more upside.
With the memecoin mania heating up, Solana is getting close to a new all-time high.
The price of Solana has been steadily rising throughout November, thanks to a number of positive triggers like as the impending departure of Securities and Exchange Commission (SEC) Chair Gary Gensler and the soaring demand for memecoin.
Memecoin demand skyrocketed when Trump publicly acknowledged Elon Musk's role in the planned D.O.G.E. department.
Binance listed the recently-launched Solana memes ACT and PNUT at the same time as the news broke, and both assets quickly reached $500 million in market worth.
After a very unpredictable week, BONK announced a massive token burn on November 15. One trillion BONK tokens will be destroyed before December 25 as part of the historic burn event.
On Monday, Solana's price attempted to breach new all-time high, which was influenced by these market-moving factors.
On Monday, Solana reached a trading high on Binance of $248.52, falling just 5% short of its all-time high of $259, set in November 2021, as shown in the following chart.
The first effort to break $250 barrier was unsuccessful, but new patterns in the futures markets indicate the surge may not be done just yet.
Market participants wager $2.9 billion on Solana's approval of Trump ETF, driving up open interest.
Speculation around a possible Solana spot ETF in 2025 has been increasing, which is a major factor propelling the price of Solana amid the memecoin hype.
Fund manager VanEck of the United States formally applied to the Securities and Exchange Commission (SEC) for a spot SOL ETF on November 10.
Solana ETF approval prospects have been dwindling for months, but with Trump's victory, hopes have been raised that crypto-friendly policies may help.
The good rumors intensified when Gary Gensler made a statement on November 14 suggesting he was leaving soon.
Solana speculative markets have had very big money inflows since Trump's re-election, which supports this position.
You can see the current value of all stated future contract positions for specific assets in Coinglass' Open Interest chart below.
As of November 4th, the amount of open interest in Solana was $2.7 billion. However, as of November 18th, amid increasing memecoin speculation over the approval of the Solana ETF, the open interest in SOL has risen by $2.88 billion, reaching $5.64 billion.
There are two main reasons why this uptick in Solana open interest is noteworthy. Before anything else, the open interest growth for Solana has surpassed 96% since November 4, even if the price has only climbed by 60%.
An spike in leveraged trading activity, as traders prepare themselves for future price fluctuations, is often indicated when open interest climbs faster than price.
With a 96% increase in open interest and a 60% increase in price, it seems that market players are becoming more and more confidence in the continuation of the positive trend for Solana.
Second, at $5.64B, Solana's open interest level is much higher than at its last all-time high of $259 in 2021, when it was $1.95B.
This is indicative of stronger capital stock and market involvement in the derivatives market compared to previous bullish cycles.
In addition to bolstering the positive trend, the increased capital base will act as a buffer to protect Solana prices from periods of high volatility that may occur during market consolidation.
For Solana, a price of $260 may set in motion more gains.
Increased market liquidity due to local memecoin trading and a $2.8 billion spike in capital inflows have supported Solana's recent gain.
The price of SOL has increased by over 60% in the last 14 days and is already approaching new highs.
Bollinger Bands analysis reveals that Solana has broken out above the upper band, indicating a trend change towards a more volatile uptrend.
If Solana manages to close over $240, bulls may go for $260, which happens to be its all-time high zone from 2021 and the next key resistance level.
Additionally, the Parabolic SAR indicator's frequent placement of dots below price candles provide credence to this optimistic view.
There seems to be continuous rising momentum, with $210 and $203.94 serving as immediate support levels.
With continued upward momentum, a price breach over $260 for SOL would set off a psychological rally that might lead to a price of $300 or even higher.
However, the optimistic outlook might be thrown out the window if prices fall below $210. At $196.38, they would challenge the lower Bollinger Band.