Price tells you where a coin went. Volume tells you how many people went with it. A 15% jump on tiny volume and a 15% jump on heavy volume are two different events.
The number to look at
Not the raw volume: large coins always trade more. Divide the 24-hour volume by the market cap. For most large coins that is a few percent. When it climbs to 20%, 30% or more, the coin is in play.
Busiest coins today
On Nov 14, in the top 100: AKE traded 130% of its market cap (+33.8% on the day); TRUMP traded 33% of its market cap (-11.3% on the day); PENGU traded 26% of its market cap (-16.3% on the day).
How to use it
A breakout on high turnover has more people behind it and tends to hold longer. A big move on low turnover is easy to reverse. High turnover with a flat price means a fight between buyers and sellers, and the side that wins usually moves the price fast.
Traps
Wash trading inflates volume on small exchanges, and stablecoins always show huge turnover because they are used for every trade. Compare a coin with its own usual volume, not with other coins.
For scale: $BTC trades about 2.5% of its market cap a day.
Do you check volume before entering a trade?
#TradingVolume #CryptoBubbles