Volume and price need to move together for the signal to be meaningful. If the price moves but momentum doesn't follow, be skeptical.
Take this, for example: The Polkadot Foundation warns of a private key leak risk in the Fearless extension; 17,286 DOT involved in a security incident, $DOT 24h -1.53%, trading volume 7.86 million.
The news is somewhat negative, but there are plenty of cases where the price rebounds after an initial sell-off on bad news.
#DOT
Take this, for example: The Polkadot Foundation warns of a private key leak risk in the Fearless extension; 17,286 DOT involved in a security incident, $DOT 24h -1.53%, trading volume 7.86 million.
The news is somewhat negative, but there are plenty of cases where the price rebounds after an initial sell-off on bad news.
#DOT