$CAP 1-hour trading volume was about $6.14 million, 7.3 times the previous average; the price fell 1.59% over the same period.
A beginner’s burning question: How should you interpret a surge in trading volume?
Multiples are relative: for a coin that usually trades very little, a several-fold increase may be caused by just a few large orders. The same multiple for a top coin is much rarer.
Signals are clearer when volume and price move in the same direction. Divergences are often more worth watching—for example, when the price hits new highs while trading volume keeps declining.
Comparing several data points is more reliable than looking at just one, but even a whole range of indicators can’t give you a definitive answer.
#CAP
A beginner’s burning question: How should you interpret a surge in trading volume?
Multiples are relative: for a coin that usually trades very little, a several-fold increase may be caused by just a few large orders. The same multiple for a top coin is much rarer.
Signals are clearer when volume and price move in the same direction. Divergences are often more worth watching—for example, when the price hits new highs while trading volume keeps declining.
Comparing several data points is more reliable than looking at just one, but even a whole range of indicators can’t give you a definitive answer.
#CAP