$ZRO 15-minute trading volume was approximately $2.19 million, 5 times the previous average; the price fell 0.84% over the same period.
A newbie asks the million-dollar question: How should you interpret a spike in trading volume?
“Multiple” is relative: for a normally quiet coin, a several-fold increase in volume might be caused by just one or two large trades. The same multiple for a major coin is much rarer.
After a steep decline, a surge in volume with no further drop in price may be interpreted as a sign of buying support, but the subsequent trend needs to confirm that.
Unusually high readings are typically accompanied by greater price swings. At times like these, it’s better to reduce leverage rather than increase your position.
A newbie asks the million-dollar question: How should you interpret a spike in trading volume?
“Multiple” is relative: for a normally quiet coin, a several-fold increase in volume might be caused by just one or two large trades. The same multiple for a major coin is much rarer.
After a steep decline, a surge in volume with no further drop in price may be interpreted as a sign of buying support, but the subsequent trend needs to confirm that.
Unusually high readings are typically accompanied by greater price swings. At times like these, it’s better to reduce leverage rather than increase your position.