Coinbase Leading The Solana Buying Wave
Solana (SOL) has emerged as one of the top-performing cryptocurrencies, particularly when observing its price action on the weekly chart. According to data from Kaiko, SOL’s net buying, measured through cumulative volume delta (CVD), has been significantly influenced by Coinbase, a highly active cryptocurrency exchange in recent trading weeks.
Since October 18, Coinbase has led the buying wave by purchasing over 2.2 million SOL. Following closely behind is Binance, the world’s largest cryptocurrency exchange, which has bought around 2 million SOL during the same period. Despite Binance’s significant involvement, specific reasons for users preferring Coinbase over Binance remain unclear.
Interestingly, SOL demand has also been rising on Kraken. However, on exchanges like Bybit, Upbit, and OKX, SOL demand has been decreasing. These exchanges allow derivatives trading of multiple assets, including SOL, though the reasons for the declining trajectory on these platforms remain unknown.
SOL Trending At New 2023 Highs: Will The Uptrend Continue?
As of November 7, SOL holds a prominent position as a top-10 cryptocurrency by market capitalization, ranking seventh on the leaderboard. Solana has surpassed projects like Cardano, Dogecoin, and Tron, establishing its position with a substantial gap of over $7 billion between the seventh and eighth projects in the market cap ranking.
The cumulative volume delta (CVD) is a crucial tool used to measure the difference between buying and selling volume over a specific period. A rising CVD indicates a potential continuation of the uptrend, while a falling CVD suggests otherwise.
Currently, SOL is trading at around $43, marking new 2023 highs after breaking above the resistance level at $32 in late October. Considering the increasing interest in Solana, the uptrend might persist, possibly driving the coin to double in value to $80. This critical resistance level is supported by the candlestick arrangement observed in the weekly chart.
The growing demand for SOL can be attributed to improving investor confidence and strategic decisions made by Solana Labs, such as the introduction of new features and strategic partnerships. This has attracted more capital to SOL, leading to a rising CVD, which hints at institutional interest and their intention to capitalize on the ongoing uptrend.
On November 6, the FTX estate transferred 750,000 SOL to both Binance and Kraken. While it couldn’t be verified whether they sold the assets, SOL prices retraced from recent highs. FTX, the now-defunct crypto exchange, held over $1.1 billion worth of SOL, and the estate manager has been gradually selling the coin and other crypto assets to repay creditors.
