Coinbase Driving Solana Bull Run: Will SOL 2X To $80?
November 07 2023 - 11:00PM
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Solana (SOL) is one of the top performers, looking at price action
in the weekly chart. According to Kaiko, SOL’s net buying,
measured via cumulative volume delta (CVD), has been led by
Coinbase, one of the most active cryptocurrency exchanges in the
past few trading weeks. To illustrate, since October 18, the
blockchain analytics platform notes that 2.2 million SOL have been
purchased, an indicator of rising demand as the broader crypto
market thaws. Coinbase Leading The Solana Buying Wave At over 2.2
million SOL purchased, Coinbase leads the wave of buying pressure.
However, closely behind, Binance, the world’s largest
cryptocurrency by client count, follows. There are around 2 million
SOL bought through Binance from October 18, highlighting the role
of the exchange in funneling liquidity to SOL. Even so, specific
drivers forcing users to opt for Coinbase over Binance couldn’t be
laid out. Related Reading: Dogecoin Climbs Above $0.075 To
3-Month High, But Metrics Show It’s Far From Done While at it,
there is rising demand for SOL on Kraken. Even so, demand for SOL
has been fizzling on Bybit, Upbit, and OKX over the same period. It
couldn’t be ascertained why the trajectory on these exchanges has
been trending lower. However, what’s clear is that all of these
exchanges allow derivatives trading of multiple assets, including
SOL. When writing on November 7, SOL is a top-10 coin by market
cap. Perched at seventh in the leaderboard, Solana has flipped
Cardano, Dogecoin, and Tron, cementing its position considering the
over $7 billion gap between the seventh and eighth projects in the
market cap ranking. The CVD measures the difference between
buying and selling volume over a period. The tool can be used to
identify trends. When rising, the uptrend might continue while a
falling CVD points otherwise. SOL Trending At New 2023 Highs: Will
The Uptrend Continue? At spot levels, SOL is also changing hands at
around $43, trending at around 2023 highs after breaking above the
resistance level at $32 in late October. The uptrend could
continue, considering the surging interest Solana continues to
garner. This may push the coin 2X to $80, a critical resistance,
looking at the candlestick arrangement in the weekly chart.
This demand is primarily because of improving investor confidence
and Solana Labs’ decision to roll out new features and strike
strategic partnerships, pulling more capital to SOL. Rising CVD
could suggest that institutions might be eying SOL, aiming to ride
the uptrend. Related Reading: Self-Authentication System Of Shiba
Inu Has Technical Issues, Developer Reveals On November 6, the FTX
estate transferred 750,000 SOL to Binance and Kraken. Although it
couldn’t be verified that they sold, SOL prices retraced from
recent highs. FTX, the defunct crypto exchange, controlled over
$1.1 billion worth of SOL, and the estate manager has been
gradually selling the coin and other crypto assets to repay
creditors. Feature image from Canva, chart from TradingView
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