Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Bobcrypto on August 29, 2020, 07:49:24 PM
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Some time ego, a pool was conducted to determined the most useful crypto market indicators, and it was
revealed that "volume" was the indicator of choice for a huge of people, while the Relative Strength Index (RSI) came in second.
In my own conclusions, I think volume is the best indicator. Higher price and low volume usually lead to a drop in price. What are your thoughts on this?
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Yes. Volume should be the main indicator to analyze before you decide to buy a coin. High volume indicates many transactions, it tells us that many people are interested to invest in that coin. On the contrary, we must avoid the low volume as it indicates people aren't interested to buy the coin. If only a few people want to buy and hold the coin, it is not a good sign to see the coin survive a long time on exchanges.
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You said it like it is. Volume is key on price movement. If you check why coins move up in Binance all because of Volume. Volume issue can't be put aside in crypto trade.
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Of course volumes is the best indicator determining a project will pump or dump. If a project with low volume with huge amounts of price ranges then I am sure price will dump seriously because of lack of investors and traders. But low price with huge amounts of volume, it would be the bump situation obviously.
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Of course volume is main indicator key if coin used by lot of people. When the volume is high it's mean many people atrracted to that coin.
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..In my own conclusions, I think volume is the best indicator. Higher price and low volume usually lead to a drop in price...
I totally agree with this. If a coin or token has high volume and the volume always increases every day, the prospect of the coin to survive and stay in the market is higher. It means that many people are trading it. Although they have a low prices, if the trading volume is always increasing, the price will commonly also rise up.
Then, it is also supported by the utility of the token or coin. IN my opinion, nowadays, many people will prefer to coins or tokens with DeFi. Additionally, if they are used for rea;l utility, they will have more value again. In this case, if they are able to be used for real payment, or having real products to utilize the token or coin, it will also help increase the price.
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Some time ego, a pool was conducted to determined the most useful crypto market indicators, and it was
revealed that "volume" was the indicator of choice for a huge of people, while the Relative Strength Index (RSI) came in second.
In my own conclusions, I think volume is the best indicator. Higher price and low volume usually lead to a drop in price. What are your thoughts on this?
I also agree with the opinion stated on the subject. I also want to add this; rising price and falling volume are indicative of decline; Also, a negative mismatch occurs in all indicators (rsi, macd, etc.). in fact, they totally support each other. They create a situation related to where we look at the subject.
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Considering volume is a must to avoid buying coins that are possible to be dead in the near future. Even the coins are already listed on exchanges, it doesn't mean all of them are good. Many of altcoins are delisted on exchanges because of low volume.