Solana (SOL) reached an all-time high (ATH) of $277.99 on January 18, driven by a surge in activity surrounding the newly launched TRUMP memecoin.
The buzz around the meme coin ahead of Donald Trump’s January 20 inauguration has fueled substantial trading activity on the Solana network, propelling SOL’s price and on-chain metrics to record levels.
Solana’s Price and Open Interest Touch New Peaks
Solana-based TRUMP has captured significant market attention since it launched unexpectedly on Saturday. This has led to a surge in activity on the Solana network, which has, in turn, driven up the value of its SOL coin.
On January 18, SOL climbed to a new all-time of $277.99. While it has since witnessed a 1% price correction, the demand for the altcoin remains high.
This is reflected by its open interest, which continues to grow. As of this writing, this sits at an all-time high of $8.57 billion, surging 25% over the past 24 hours.
Open interest refers to the total number of outstanding derivative contracts (such as futures or options) that have not been settled or closed. When it rises during an asset’s price rally, it indicates increasing participation and confidence among traders as more capital flows into futures contracts.
This trend is a bullish signal, suggesting that SOL’s price movement is supported by growing market activity and conviction.
Notably, SOL’s futures traders have continued to bet on a sustained rally. This is evidenced by the coin’s positive funding rate, which is 0.0093% at press time.
Solana Funding Rate. Source: TradingView
The funding rate is a periodic fee paid between long and short traders in perpetual futures markets to keep the contract price aligned with the spot price. When it is positive, it means longs are paying shorts, indicating bullish sentiment as more traders are betting on the price increasing.
SOL Price Prediction: Coin May Rally to New Highs
On the daily chart, SOL trades just below its all-time of $277.99, which now forms a resistance level. With sustained buying pressure, the coin’s break will break above this level, flip it into a support zone, and continue its uptrend.
However, if profit-taking activity resurfaces, this bullish projection will be invalidated. In that scenario, SOL’s price could plummet to $227.96.
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