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Solana's CVD indicator has just shown that the buying surplus on the asset is reaching $29 million, and it will most likely move upwards from here as the market recovery continues. However, it is important to use the metric correctly.
SOL's CVD, which tracks net buying and selling, was positive over the previous week and came in at $29 million. If this positive net buying trend persists, it may indicate elevated demand for the asset and lead to a bullish trend reversal. The Cumulative Volume Delta, or CVD, gives traders insight into the relative abundance of buyers and sellers on the market.
Positive CVD indicates a greater degree of buying pressure than selling pressure. The information supplied demonstrates that Solana's buying activity on a number of exchanges, including Binance, Coinbase and Kraken, significantly increased following the VanEck spot ETH ETF report.
The price chart of Solana is trading at approximately $14. The asset has experienced some pullback after encountering resistance at the 50 EMA at $155. Even with these brief oscillations, the fact that it is still above the 200 EMA indicates that the overall trend may still be bullish.
Gamza KhanzadaevIn order to validate a stronger bullish trend, Solana must break above the $150 psychological threshold. Reaching this mark would indicate more momentum and might draw in more customers.
A crucial support level is found at $131, which is the 200 EMA. Solana needs to hold onto this support in order to stop additional losses and keep the current bullish sentiment going. The $29 million positive CVD is a strong indication of bullishness and may become a foundation for a bull market. It could be wise to keep an eye out for sustained positive net buying, as this is the only thing that matters for the asset right now.
Alex Dovbnya
Dan Burgin