The market capitalization of Solana (SOL) recently soared to over $100 billion, setting the stage for a new all-time high (ATH) for its native token SOL.

Solana joins the $100 billion club, is an SOL ATH coming soon?

Solana is currently the fourth-largest cryptocurrency by market capitalization, recently surpassing the $100 billion mark, joining Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). Driven by positive market sentiment and the upcoming 2024 U.S. elections, the token continues to benefit from a strong bullish trend.

At the time of writing, the trading price of Solana's native token SOL is $219.3, with a weekly increase of up to 38.47%. In comparison, Bitcoin rose by 30.7% during the same period, while Ethereum increased by 38.3%, with the bull market rebound also pushing SOL above $200 for the first time in six months.

Recall that SOL's current all-time high is $259.96, set in November 2021, during the peak of the cryptocurrency bull market, fueled by monetary easing policies to combat the coronavirus pandemic.

However, during the height of the FTX crisis, this upward momentum for SOL sharply changed, with its price plummeting to a low of $8.68 in November 2022. As a result, SOL's current market price has increased nearly 40 times from those lows.

Despite a significant rebound, the main upward wave has not fully started, and SOL still has room to rise, potentially reaching new highs in the current price surge. However, the threat of a pullback seems imminent. Therefore, reclaiming historical highs may be quite challenging.

Derivative Data Analysis

Interestingly, entering the $100 billion club marks Solana's second milestone achieved in November. Recently, its open interest [OI] reached a historical high of $4.28 billion.

However, data from Coinglass shows that as of the report, OI has decreased by 5.18%, suggesting a possible profit-taking or shift in market sentiment.

Nevertheless, trading volume surged by 55.38%, indicating increased market activity and strong momentum. The current financing rate has enhanced the overall bullish sentiment, although a long-short ratio of 0.95 suggests a slight bearish inclination.

The quality of derivative signals is mixed, indicating that the market has both bullish enthusiasm and potential cautious sentiment.

Overall bullish on SOL

As BTC continues to set new highs above $89,500, the broader cryptocurrency market also seems to follow the price momentum of the leading asset.

Among major altcoins, SOL has attracted the interest of many cryptocurrency analysts as it has the potential to 'disrupt' Ethereum's market capitalization and become the leading smart contract platform.

Solana currently peaks with a market capitalization of $100 billion, but the derivatives market is sending cautious signals, and an abnormal pullback in the current market trend seems imminent. The market is gradually adopting a cautious attitude towards SOL's current price trend, believing that the token may experience a significant pullback before further increases.