In the early days of crypto, trading was pegged on personal hunches as to where the price of a particular cryptocurrency will be next. But, according to a recent survey, crypto volume carries the biggest indicator of what to expect next in terms of prices.
Before fully committing to trade, traders have gathered all sorts of signs and indicators for them to be sure that they are not trading at a lower price while a higher price could be next. However, the survey revealed that crypto volume is the largest factor any trader should on.
The survey which was conducted by CoinDesk Markets and which attracted 3,255 voters was based on whether a trader should rely on moving averages, crypto volume, or the Relative Strength Index (RSI).
Out of the 3,255 voters, 30 percent said that the Relative Strength Index is key to evaluating the movement of crypto prices, 23 percent said that they rely on moving averages, while 38 percent said that crypto volume is their major ingredient in evaluating crypto prices.
For the Director of Business Development and Operations at Coinigy, a crypto trading platform, Matt Thompson:
Crypto volume is hands down the most important aspect outside of price. Even for many other technical indicators, volume can serve as confirmation or rejection of a given hypothesis.
Other prominent persons in the cryptocurrency circle also agreed with Thompson’s views that crypto volume indicates the “sincerity of the price action it is tied to.”
According to CoinDesk:
If the price falls along with volume, it generally marks a point of exhaustion, signaling a reversal will happen soon. While conversely, a rise in price with a drop in total volume presents a stronger case for the bears as they drag prices for a lower bid.
Are you also of the view that crypto volume is among the key indicators of price movement?
Let us know your views in the comments section below.