When researching a particular coin/token project, we often focus on three main factors: Price, Supply, and Market Cap. But there's a crucial factor that many overlook or misunderstand: Trading Volume.

In reality, many investors – even those with experience – can still easily be "confused" when looking at the colors of trading volume. For example: the market is down, prices are red across the board… but trading volume is green. So what’s happening? 🤔 Let's clarify everything in the simplest way.

✅ What is Trading Volume?

Trading volume reflects the total amount of coins bought and sold over a specific period (usually calculated over 24 hours). What’s important is that volume does not reflect whether prices are rising or falling; it only indicates the level of trading activity.

🔍 When the Market is Red, Why is the Volume Still Green?

Imagine the market is "on fire", prices are plummeting, and market capitalization is also declining. At this point, two scenarios could occur:

Scenario 1: Confidence is still there

Investors believe in the project; they choose to hodl (hold coins). They do not buy more or sell. They wait for the market to recover. The consequence is: trading volume decreases, as there aren't many buying and selling activities.

Scenario 2: Loss of confidence or panic mentality

At this point, many people sell off due to fear of deeper losses. Others jump in to "catch the bottom" because they see cheap prices. Both sellers and buyers are active – leading to a significant increase in trading volume.

👉 Key Takeaway:

Increased trading volume does not mean prices will rise. It only reflects that the market is very "lively" — whether due to excitement or panic.

Many see the green volume bar and immediately think: “It’s about to pump!”. But the truth may be that the market is experiencing a massive sell-off. 😅

📌 Summary:

  • High trading volume = The market is experiencing a lot of buying and selling activity (whether prices are rising or falling)

  • Low trading volume = Investors are waiting, not many are taking action

🧠 Conclusion

Next time you see volume increasing while the market is down, don't rush to think that prices are about to recover. Observe more closely:

  • Is a big investor quietly accumulating?

  • Or is it just the crowd panicking?

Don't blindly trust the colors. Observe, learn, and make decisions based on data and real context.

Volume doesn’t lie — but it can mislead you if you don't understand its nature.