Whenever we do fundamental research on a coin, we usually focus on three things — Price, Supply, and Market Cap. But there’s one more important thing: Trading Volume. And to be honest, this one confuses a lot of people.
Sometimes the market is green, and trading volume is green too. That makes sense. But sometimes the market is red… and trading volume is still green. What’s going on there? 🤔
Let’s break it down in the simplest way possible.
Trading volume means how much of a coin is being bought and sold in a specific time period, usually in 24 hours. It has nothing to do with whether the price is going up or down — it only shows how actively a coin is being traded.
Now, imagine the market is falling — prices are going down, and the market cap is dropping too. At this point, two things can happen.
Scenario 1: If people believe in the project, they hold. They say, “No problem, it’ll bounce back.” So they don’t buy more, they don’t sell — they just wait. As a result, the trading activity slows down, and trading volume goes down.
Scenario 2: If people don’t trust the project anymore, they panic and start selling at a loss. Others might see the dip and try to buy cheap. So there’s more panic selling and some dip buying — basically, a lot of movement. This increases the trading volume.
So remember — a green trading volume doesn’t always mean a coin is pumping. It just means there’s a lot of action — buying or selling or both. Don’t get excited too early. Sometimes people see a green volume bar and think, “Pump incoming!” But it could just be panic selling in full swing. 😅
In short:
High trading volume = Lots of buying and selling happening
Low trading volume = People are just sitting and watching
So the next time you see green volume on a red day, don’t assume a pump is around the corner. Check what’s really going on — is it smart accumulation, or just everyone running for the exit?
Always observe. Always learn. And never blindly trust colors. 😄
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