🐋 $PAXG 1 Hourly trading volume was about $15.54 million, 3.8 times the previous average; the price barely moved during the same period.
When trading volume surges, many people’s first thought is that money is flowing in—but not necessarily.
Multiples are relative: for a coin that usually trades little, a several-fold increase in volume could be caused by just one or two large orders. The same multiple increase is much rarer for a top coin.
Sometimes a surge in volume comes from a wave of liquidations. Liquidation orders are forced trades, so this kind of volume surge means something different from active buying and selling. You need to consider liquidation activity too.
First work out whether you can withstand the worst-case outcome on your leveraged positions, then see what the indicators say.
This isn’t financial advice. Make your own trading decisions.
When trading volume surges, many people’s first thought is that money is flowing in—but not necessarily.
Multiples are relative: for a coin that usually trades little, a several-fold increase in volume could be caused by just one or two large orders. The same multiple increase is much rarer for a top coin.
Sometimes a surge in volume comes from a wave of liquidations. Liquidation orders are forced trades, so this kind of volume surge means something different from active buying and selling. You need to consider liquidation activity too.
First work out whether you can withstand the worst-case outcome on your leveraged positions, then see what the indicators say.
This isn’t financial advice. Make your own trading decisions.