There’s a fairly common misconception in the crypto market: thinking that if a coin records millions of dollars in daily volume, that same amount of money is flowing into the project.
But that’s not how it works.
Imagine PEPE records US$100 million in volume in one day.
That doesn’t mean US$100 million in new money has come in. Volume represents the total value of transactions made, including buys and sells. The same capital can be involved in multiple transactions throughout the day.
For example:
* One investor buys US$10,000 worth of PEPE.
* Another investor sells those tokens.
* Later, the buyer sells them again.
* Another participant buys them again.
Cumulative volume increases, even though no new US$20,000 has entered the market.
So, what should we really be looking at?
* Volume: how much is being traded.
* Liquidity: how easily you can buy or sell without causing major price fluctuations.
* Market depth: how many buy and sell orders exist at different prices.
* Buying and selling pressure: which side is dominating the trades.
The difference is fundamental: a cryptocurrency can have high volume and still experience sharp declines if selling pressure outweighs buying pressure.
The question is: do you think PEPE needs more volume or sustained buying demand to reach much higher prices?
#PEPE #Criptomonedas #Trading #PEPE $PEPE
