Elevated volume indicates a trading period where the quantity of an asset exchanged significantly surpasses its typical average. This condition suggests heightened market participation and increased interest from buyers and sellers. It often precedes or accompanies substantial price movements, signaling market conviction or shifts in sentiment.
Context
In cryptocurrency markets, elevated volume frequently accompanies major news announcements, protocol upgrades, or significant regulatory developments. Traders monitor these periods closely for indications of trend confirmation or potential reversals in asset prices. The persistence of high volume alongside price changes provides crucial data for technical analysis, aiding in the assessment of market strength and direction.
The crypto market experienced a sharp downturn with over $442 million in liquidations, primarily from leveraged long positions, indicating a broad shift to bearish sentiment.
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