Key Insights
- Solana spot trading on exchanges in November reveals improving adoption.
- Deeper liquidity on Binance reveals why SOL investors should closely monitor the cryptocurrency’s movement on the exchange.
- Order book data reveals low confidence among whales. Here’s how that could influence SOL price movements.
November was an overall bearish period for the market, especially in price movements, but Solana still maintained positive growth in key areas.
The Solana network has been growing, but just how much has it grown in recent times?
The Solana network reportedly accounted for $66.1 billion in trading volume in November. This was the lowest monthly volume recorded in 5 months.
This was no surprise considering the market cooled down substantially over the last 3 months or so.
Nevertheless, things were a bit more exciting on exchanges as far as Solana growth was concerned.
Recent data revealed that Binance held the dominant share of SOL trading volumes at $35.6 billion in November. This was more than half of the total SOL trading volumes on exchanges.
Beyond the whale’s scope, SOL still managed to achieve overall positive net spot inflows by more than $21 million in the last 2 days.
This could indicate that retail buyers have been aggressively buying in anticipation of more recovery.
SOL trading volumes on the Coinbase exchange were third around the world.
This demonstrated that the U.S contributed a significant amount of the monthly volumes. A clear sign of rising demand among U.S.-based investors.
Why Solana Volume Dominance on Binance May be Ideal for Investors
One of the key takeaways from the Solana spot trading volumes on exchanges report was the dominant volumes on Binance. It achieved this courtesy of its position as the largest exchange by trading volumes.
This dominance means Binance volumes have the biggest impact on SOL price movements. In other words, traders can identify potential movements by observing metrics on Binance.
Speaking of volumes from Binance, large orderbook data revealed that whales on the exchange contributed over $40 million worth of sell pressure in the last 24 hours.
They also executed more than $153 million worth of short positions in during the same trading session. In other words, whales have been suppressing SOL bulls after the latest upside attempt.
Whales on other exchanges also contributed significantly to the sell pressure. Coinbase and OKX contributed over $5 million worth of sell pressure in the spot market.
Solana ETFs also kicked off the month on an uncertain note after $13.5 million in outflows on Monday. ETFs acquired back $45.7 million on Tuesday.
Solana ETF inflows remained relatively low, reflecting the uncertainty that prevailed over the last few months.
Will SOL Price Recovery Achieve Significant Momentum?
SOL price action may be locked in a short-term narrow range between $122 and $144. The weak whale activity suggests a downside swing is likely in the next few days.
Such an outcome would counteract the rising bullish expectations but aligns with whale activity in the last 3 days.
Capitulation may also be on the cards for SOL, in which case the price may drop to the next support level near $100. If that happens, then SOL may risk dropping to double-digit levels.
If SOL current price range ends up becoming the bottom range, the cryptocurrency could be headed for a rally extension.
The Fibonacci retracement suggests that it may rally by 32% to 42% from its price level at press time.