Take a closer look at some of the developments fueling Solana’s current price surge as analysts investigate whether or not spot and perpetual CVD markets played a role in the performance of the altcoin. Read about the longevity of a rebound and some key drivers that will define what lies ahead for Solana.
Spot CVD: The Primary Driver
The latest Solana rally is largely a function of the growing bid side of liquidity in the spot market, as per the analysis. Cumulative Volume Delta (CVD) is a measurement of the buying and selling being done in markets which can provide an overarching view as to how much buyers want buy/owners want to sell.
The figures reveal spot buyers reign supreme, giving bullish relief support in the form of the rising price when they snatch more SOL tokens. This indicates that the rally is not driven by speculation in the futures market but real demand for the underlying blockchain of Solana.
This is a trend that often presages a more sustained rally, rather than simply a price spike driven by leverage or other market dynamics.
Perpetual Futures Divergence
Though the main reason for Solana breakout could be due to spot market, the analysis also shows a divergence in the perpetual futures market. On Perpetual CVD, where perpetual futures contracts are traded, the In-Out Money shows a stellar impulse but the short term readings tell otherwise against the spot.
Consequently, the spot buyers seem more certain than perpetual futures traders since the funding rate and futures liquidation measures indicated a cautious sentiment across the derivatives market.
At the root of this is the divergence between the spot and perpetual markets, suggesting that this rally may not be entirely supported by market sentiment. This can act as some volatility or resistance to stop Solana from touching higher price levels.
Conclusion
The surge of Solana in recently initiated spot CVD trend depicts that the bull run is predominantly driven by the spike in on-chain spot market demand. This indicates a recovery that might be sustainable, one in which actual buyers are indeed bidding up prices. Still, the continued divergence in the perpetual futures market is something that should not be ignored as it indicates that wider market sentiment could still and might not have fully got on board with this fresh uptrend. However, even damaging market dynamics — for instance the positive funding rate and a rise in longs liquidations — may send Solana higher in short term and with $160 next resistance level to break could set it on its way toward testing of $185.
