$XMR ｜1-hour trading volume up 3.5x｜Price up 2.32%
Before looking at fund flows, first understand what a surge in trading volume means.
Unusual volume can sometimes appear before price moves, so many people treat a sudden spike in volume as a cue to pay attention to a coin. The price action indicates which way it may go.
A surge in volume may also result from concentrated liquidations: liquidation orders are executed involuntarily, so this kind of volume has a different meaning from voluntary buying and selling. It should be assessed alongside liquidation data.
Extreme readings often signal more intense volatility. At such times, it is better to reduce your position rather than increase it.
Before looking at fund flows, first understand what a surge in trading volume means.
Unusual volume can sometimes appear before price moves, so many people treat a sudden spike in volume as a cue to pay attention to a coin. The price action indicates which way it may go.
A surge in volume may also result from concentrated liquidations: liquidation orders are executed involuntarily, so this kind of volume has a different meaning from voluntary buying and selling. It should be assessed alongside liquidation data.
Extreme readings often signal more intense volatility. At such times, it is better to reduce your position rather than increase it.