SOL is up more than 20% this week, and data suggests that the rally will continue Solanaā$196.29 surged 22.5% between Nov. 5 and Nov. 7, reaching its highest level in seven months. This rally mirrored broader altcoin gains, which rose$76,399 reached a new all-time high on Nov. 7.
A significant portion of the bullish momentum can be attributed to President-elect Donald Trumpās victory in the United States presidential election and the Republican party securing majority control of the Senate, which suggests the potential for more innovation-friendly regulations in the cryptocurrency sector.
SOLās rising demand was accompanied by a jump in leveraged positions, with aggregate open interest for Solana futures reaching an all-time high on Nov. 7. Despite the higher risk of forced liquidations in the event of a SOL price correction, derivatives data points to further upside potential.
SOL futures open interest surged to 21.1 million SOL on Nov. 7, an 11% increase from the previous week and a new high in nominal terms, reaching $4 billion. This reflects a strong adoption of SOL derivatives, suggesting rising institutional interest but also introducing potential risks.
Large futures positions can be monitored, which may lead to whales becoming targets for entities looking to profit from short-term market volatility. In derivatives markets, however, long and short positions are always balanced, meaning the funding rate offers a window into which side is seeking more leverage.$SOL
