Coinbase Driving Solana Bull Run: Will SOL 2X To $80?

Dalmas Ngetich

1 year ago

3 mins read

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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.

SOL cumulative volume delta | Source: Kaiko

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.

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.

Solana price trending upwards on the daily chart | Source: SOLUSDT on Binance, TradingView

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.

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

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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