How does low trading volume affect the bullish or bearish trend in the cryptocurrency market?

1 answers

• Feb 18, 2022 · 3 years ago
  Low trading volume can be a double-edged sword in the cryptocurrency market. On one hand, it can amplify the bullish trend by creating a scarcity of available coins, which can drive up prices. This is especially true for low-cap coins with limited supply. On the other hand, low trading volume can also make the market more vulnerable to manipulation and sudden price swings. It's important for traders to exercise caution and consider other factors, such as market sentiment and fundamental analysis, when interpreting the impact of low trading volume on the market trend.
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