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These tokens saw the biggest trading volume pumps last week. How could traders benefit? -Breaking

by Mike Robinson

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An uptick in trading volume is one of the key components of a digital asset’s healthy market outlook. It indicates both robust liquidity and a surge in fellow traders’ enthusiasm for the token. The relationship between the asset’s price and trading volume is a nuanced one: Volume spikes often trail strong rallies as more and more traders hop on the bandwagon in the hopes of a ride to the moon.

In some instances, however, price appreciation can be caused by a surge in trading volume. Crypto investors can spot signs that a rally is coming by being alerted when there’s unusual trading activity surrounding a token. It doesn’t matter if the volume spikes precede or follow price action; assets with unusual trading behavior around this key metric are worth a close look.

FRONT: Trading volume explosion following an exchange listing

QKC: An insignificant price pump that anticipates a peak

QKC price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TI

WAVES: Price wave first, trading volume wave second

WAVES price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TI

LOOM: Short trading volume pump anticipates price peak

LOOM price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TI

OXY: Prices and trading volumes rise in tandem

OXY price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TI

Comprehensive crypto data intelligence

CT Markets Pro’s Unusual Trading Volume panel, Feb. 3. Source: Cointelegraph Markets Pro

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