Trading Volume Shifts

Definition ∞ Trading Volume Shifts refer to notable changes in the quantity of an asset traded over a specific period. An increase indicates heightened market activity and interest, while a decrease suggests waning participation. These shifts often precede or accompany significant price movements, providing insights into market sentiment and liquidity. Analyzing volume helps confirm the strength of price trends.
Context ∞ In digital asset markets, trading volume shifts are a primary indicator for assessing market health and potential price direction. Current news frequently analyzes how volume changes correlate with major announcements or market events, signaling whether a price movement is supported by genuine interest. Understanding these shifts is crucial for technical analysis and market forecasting.