Increased Trading Activity on Solana Blockchain Signals Bullish Trend
The Solana blockchain is currently experiencing a surge in trading activity on major exchanges such as Coinbase, Binance, Gate.io, and OKX. A closer look at the trading patterns reveals that larger buyers are accumulating SOL, indicating a potentially bullish trend for the cryptocurrency. Coinact.gg, a platform that tracks real-time trading analysis, has detected a Major TWAP [Time-Weighted Average Price] alert for Solana.
The Major TWAP Detection alert on SOL signifies that significant amounts of the cryptocurrency are being bought through an automated method that spreads out the purchases over time to minimize market impact. Currently, approximately $6.5 million worth of SOL is being purchased every hour, highlighting the growing interest in the altcoin among larger investors.
The TWAP strategy, commonly used by high-profile investors like financial institutions, suggests that these players are strategically increasing their SOL holdings in anticipation of future price increases. While automated orders were executed across various exchanges, Binance stood out with a red indicator, indicating potential market strategies or conditions specific to the exchange.
The surge in trading activity comes as the Solana blockchain gains attention due to the anticipation of upcoming SOL-focused exchange-traded funds [ETFs]. The final decision deadline for these ETFs is expected around mid-March 2025, following applications filed by the Chicago Board Options Exchange [CBOE] for ETFs proposed by VanEck and 21Shares.
The optimism surrounding the potential launch of SOL ETFs has turned traders and investors bullish, leading to a 17% surge in the price of Solana in just two days, reclaiming the $140 level. With growing interest and speculation in the cryptocurrency market, Solana continues to attract attention from investors looking to capitalize on the potential growth of the blockchain.
