Solana (SOL) has reached a new all-time high of $277.99 on January 18, fueled by the buzz around the newly launched TRUMP memecoin.
The excitement surrounding Donald Trump’s upcoming January 20 inauguration has driven significant trading activity on the Solana network, boosting both SOL’s price and its on-chain metrics.
TRUMP Memecoin Drives Solana’s Growth
The unexpected launch of the Solana-based TRUMP memecoin has sparked immense interest in the market. This surge in activity has propelled Solana’s value to record highs, demonstrating its robust ecosystem.
Despite a 1% price dip after hitting its peak, demand for SOL remains strong.
Open Interest Hits All-Time High
Solana’s growing popularity is evident in its open interest, which recently hit an all-time high of $8.57 billion, a 25% increase in just 24 hours. Open interest reflects the total number of outstanding futures contracts that remain unsettled.
When open interest rises during a price rally, it signals growing confidence among traders and an influx of capital into the market—a bullish indicator for SOL.
Positive Funding Rate Reflects Bullish Sentiment
Another key metric supporting Solana’s bullish outlook is its positive funding rate of 0.0093%. This rate indicates that traders betting on SOL’s price increase (long positions) are paying those betting on a decrease (short positions). A positive funding rate highlights widespread optimism about the coin’s upward trajectory.
SOL Price Prediction: Breakout or Correction?
On the daily chart, SOL is trading just below its $277.99 resistance level. Sustained buying pressure could push the price past this point, flipping it into a support zone and setting the stage for further gains.
However, if profit-taking resumes, SOL’s price could drop to $227.96, invalidating the bullish trend.
