$G |1-hour volume up 27.2x|price down 9.18%
Before looking at positions, first understand the volume spike.
Every trade has both a buyer and a seller, so a spike in volume by itself doesn’t mean there are more buyers or that money is flowing in; it only means trading activity has increased.
A spike in volume may also result from concentrated liquidations: liquidation orders are forcibly executed, so this kind of volume surge doesn’t mean the same thing as active buying and selling. It needs to be checked against liquidation data.
Cross-checking several indicators is more reliable than looking at just one, but even multiple signals can’t provide a definitive conclusion.
Before looking at positions, first understand the volume spike.
Every trade has both a buyer and a seller, so a spike in volume by itself doesn’t mean there are more buyers or that money is flowing in; it only means trading activity has increased.
A spike in volume may also result from concentrated liquidations: liquidation orders are forcibly executed, so this kind of volume surge doesn’t mean the same thing as active buying and selling. It needs to be checked against liquidation data.
Cross-checking several indicators is more reliable than looking at just one, but even multiple signals can’t provide a definitive conclusion.
