Looking at the price action on the weekly chart, Solana (SOL) is one of the best performing coins.according to BeiziSOL’s net buying activity, measured by cumulative volume delta (CVD), was led by Coinbase, one of the most actively traded cryptocurrency exchanges over the past few weeks. For example, as of October 18, the blockchain analytics platform noted that 2.2 million SOL had been purchased, indicating that demand is increasing as the broader crypto market thaws.
Coinbase leads Solana buying wave
Coinbase led the wave of buying pressure by purchasing over 2.2 million SOL. However, it is closely followed by Binance, which is the world’s largest cryptocurrency by number of customers. Approximately 2 million SOL have been purchased through Binance since October 18, highlighting the exchange’s role in providing liquidity for SOL. Even so, the specific incentives forcing users to choose Coinbase over Binance have yet to emerge.
At the same time, Kraken’s demand for SOL continued to increase. Despite this, the demand for SOL from Bybit, Upbit and OKX gradually decreased during the same period. It is impossible to determine why these exchanges are trending downward. However, what is clear is that all these exchanges allow multi-asset derivatives trading, including SOL.
As of this writing, SOL ranks among the top 10 stocks by market capitalization. Solana ranks seventh, surpassing Cardano, Dogecoin and Tron, consolidating its position considering the more than $7 billion gap between the seventh and eighth projects in capitalization rankings.
CVD measures the difference between buying and selling volume over a period of time. This tool can be used to identify trends. When increasing, the upward trend can continue, while decreasing CVD does the opposite.
SOL hits new highs in 2023: Will the uptrend continue?
SOL is trading around the $43 mark, trending towards 2023 highs after overcoming resistance at $32 in late October. As Solana continues to gain traction and interest continues to grow, the upward trend is likely to continue. Judging from the arrangement of candles on the weekly chart, this could push the coin 2x higher towards $80, a key resistance level.
This demand is primarily due to increased investor confidence and Solana Labs’ decision to launch new features and enter into strategic partnerships to attract additional funding to SOL. An increase in CVD may indicate that organizations may be focusing on SOL with the aim of driving an upward trend.
On November 6, FTX assets transferred 750,000 SOL to Binance and Kraken. While it cannot be confirmed whether they have been sold, SOL prices have retreated from recent highs. Defunct cryptocurrency exchange FTX controlled more than $1.1 billion worth of SOL, and the asset manager has been gradually selling the token and other crypto assets to pay off creditors.
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According to Bitcoin News