When analyzing a crypto project, most people zero in on Price, Supply, and Market Cap. But there’s one more key metric often misunderstood: Trading Volume.
And trust me—it can be very misleading if you don’t know what you’re looking at.
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Here’s the truth:
Trading volume tells you how much of a coin is being traded—not why or in which direction. It simply shows the level of activity, not whether it’s bullish or bearish.
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Two scenarios to understand volume better:
1. Market drops, volume drops
People trust the project. They hold. No panic, no rush—just waiting. Result? Low trading volume.
2. Market drops, volume spikes
Fear kicks in. Panic selling begins. Others start dip-buying. Everyone’s moving. Result? High trading volume.
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So when you see green volume bars on a red price day, don’t immediately yell “pump incoming!”
That volume might just be panic-driven selling—not bullish momentum.
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Quick takeaway:
High volume = More activity (buying or selling)
Low volume = Inactive market (people waiting it out)
Don’t just follow color signals—follow the behavior behind them.
Always observe. Always learn. Never get faked out by green bars on red days.
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