Definition ∞ Cumulative Volume Delta, or CVD, is a technical indicator that aggregates the net difference between buying and selling volume executed at market prices over time. It quantifies the sustained pressure from market orders, revealing whether buyers or sellers are more aggressive. A rising CVD suggests persistent buying pressure, while a falling CVD indicates strong selling pressure. This metric helps confirm the underlying conviction behind price movements.
Context ∞ In crypto trading news, CVD is frequently referenced to validate price trends or identify divergences that might signal an impending reversal. For instance, a price increase with a declining CVD could suggest weakness in the upward movement, potentially indicating a false rally. Traders use CVD to gain deeper insight into order flow dynamics.
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