A project called Matchain on Binance Alpha rose 42.57% in a day, while trading volume was only $MAT 1.01 million.
When trading volume is about the same size as market cap, it suggests that not many tokens are actually changing hands, so it takes little to push the price up—and just as little to send it crashing down.
A quick note on a chart-watching habit: make sure to distinguish circulating market cap from fully diluted market cap. The bigger the gap between them, the more tokens are waiting to be released later. This data only shows one market cap—has anyone looked into how far apart the circulating and fully diluted figures are?
When trading volume is about the same size as market cap, it suggests that not many tokens are actually changing hands, so it takes little to push the price up—and just as little to send it crashing down.
A quick note on a chart-watching habit: make sure to distinguish circulating market cap from fully diluted market cap. The bigger the gap between them, the more tokens are waiting to be released later. This data only shows one market cap—has anyone looked into how far apart the circulating and fully diluted figures are?