Market Recovery: RSI, CVD & Volume Insights
Posted: Wed Aug 13, 2025 8:12 am
The latest Glassnode report offers crucial insights into the state of the spot and futures markets, highlighting both the strength and fragility of the current recovery. Here’s a breakdown of the key indicators:
Relative Strength Index (RSI)
The RSI has moved from 41.5 to 47.5, indicating a 14.7% increase and a shift out of the oversold zone. This suggests that buyer momentum is returning, signaling a potential rebound. However, with the RSI still below the midpoint, caution is necessary, as sustained momentum is required to confirm a broader trend reversal.
Spot Cumulative Volume Delta (CVD)
The CVD has seen a 94.3% improvement, rising to -12.8M. This shift reflects a move from heavy selling dominance toward a more balanced market. The recovery in CVD points to growing confidence in near-term price increases. However, if the CVD continues to climb above its high statistical band, it may indicate profit-taking or a reversal in sentiment, requiring ongoing monitoring.
Spot Market Volume
Spot trading volume has dropped by 22%, from $7.3B to $5.7B, suggesting reduced market participation. While the price recovery continues, it remains unsupported by widespread engagement, signaling that the recovery might lack the strength to sustain itself. An increase in volume is critical for maintaining upward momentum and avoiding a potential consolidation phase.
Futures Market CVD
In the futures market, the CVD reflects a shift toward aggressive buyer activity, indicating a restoration of confidence among leveraged traders.
Conclusion
The market has transitioned from seller exhaustion to a strong rebound near recent highs. While the RSI and CVD point to positive momentum, the declining trading volume suggests that the recovery still lacks broad investor participation. Continuous monitoring is required, as the potential for profit-taking could shift sentiment quickly.
Relative Strength Index (RSI)
The RSI has moved from 41.5 to 47.5, indicating a 14.7% increase and a shift out of the oversold zone. This suggests that buyer momentum is returning, signaling a potential rebound. However, with the RSI still below the midpoint, caution is necessary, as sustained momentum is required to confirm a broader trend reversal.
Spot Cumulative Volume Delta (CVD)
The CVD has seen a 94.3% improvement, rising to -12.8M. This shift reflects a move from heavy selling dominance toward a more balanced market. The recovery in CVD points to growing confidence in near-term price increases. However, if the CVD continues to climb above its high statistical band, it may indicate profit-taking or a reversal in sentiment, requiring ongoing monitoring.
Spot Market Volume
Spot trading volume has dropped by 22%, from $7.3B to $5.7B, suggesting reduced market participation. While the price recovery continues, it remains unsupported by widespread engagement, signaling that the recovery might lack the strength to sustain itself. An increase in volume is critical for maintaining upward momentum and avoiding a potential consolidation phase.
Futures Market CVD
In the futures market, the CVD reflects a shift toward aggressive buyer activity, indicating a restoration of confidence among leveraged traders.
Conclusion
The market has transitioned from seller exhaustion to a strong rebound near recent highs. While the RSI and CVD point to positive momentum, the declining trading volume suggests that the recovery still lacks broad investor participation. Continuous monitoring is required, as the potential for profit-taking could shift sentiment quickly.