Volume
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Volume refers to the total amount of an asset traded over a specific period, often used to measure market activity and investor interest.
How Volume Works
In crypto markets, volume indicates how many tokens or coins have been bought and sold on an exchange within a given timeframe, usually 24 hours. It can be expressed in units of the asset or its equivalent value in fiat currency (like USD). High volume suggests active trading, while low volume may indicate a lack of liquidity or interest.
Why Volume Matters
Trading volume is a key indicator in technical analysis. It helps confirm trends, signal market strength, or warn of potential reversals. For investors, volume can also reveal how easy or difficult it might be to enter or exit positions without significant price slippage.