Relationship Between Volume and Price

[Sheikhsufyan 12]

If trading volume increases,prices.generally move in the same direction.That is,if a security is continuing higher in  an uptrend,the  volume of the security should also increase and vice versa.

[ltaa02 52]

Volume shows how many traders are trading for these currencies. This way you will see whether the token is good or not. and transaction volume is very important in cryptocurrencies.

 

[Crpto❤️ 55]

Yes this is confusing to the junior members and the new members of The forum. But I want to say that if a coin is high in Volume then the price of that coin can never be high because this will never be hold and the buying ratio will be high as compare to the selling ratio. And this is the reason that a coin will go up or down in the field of digital market.

[Froshk 1828]

The operational principle of crypto currency has some similarities with economics, such that when the demand volume is high the prices become high and the supplies are equally low 

[Abdur5555 45]

The volume may be higher but for example if you trade with the wave now there is a 30B ripple ... so it will not cost so much but if you work with BTC the demand in the world is increasing so it can be more expensive

[Dorjoy12 8962]

On 10/21/2019 at 1:30 PM, williamz902 said:

Volume is low and the price is low?

This can be suitable  for volume  and price  relations because  Most  of the time new project has huge trading volume  and price but few days later the volume and price decrease  dramatically ..  In this case  you can say this kind of project  is just hype creator  Project.. 

[Rs Rimon 45]

Volume and price are somehow the same a little bit but price it shows only the price of the single coin but volume it shows the totally price of the traded coin. Volume of a coin is the total value of all coins in circulation and is one of the metrice used to determine value of couns and will impact to the price.

[Ahsan123456 13]

Hello I'm new user here so according to my knowledge The Relationship between. Volume and Price Variability in Futures Markets. Bradford Cornell hen the future prices of commodities are ...

[Whited35 15285]

On 10/21/2019 at 1:15 PM, williamz902 said:

1. Volume is really high, but price is still low?

It means, there are so many traders to perform the trades but supply of coins or tokens is still high.

On 10/21/2019 at 1:15 PM, williamz902 said:

2. Volume is high and the price is high?

It means supply of coins/tokens is less but the demands is very high and at the same time there are more traders to form the bullish uptrend in the markets. 

On 10/21/2019 at 1:15 PM, williamz902 said:

3. Volume is low and price is high?

It can happen if there are few traders on the trading platform but still competing to purchase crypto at the higher rate or devs of the platforms are manipulating the prices 😀

On 10/21/2019 at 1:15 PM, williamz902 said:

4. Volume is low and the price is low?

Sh*tcoins and they are often referred as worthless coins/tokens in the markets. 

[talha557 79]

Volume is basically how much people are trading that stock if many people are trading volume will be much high but if currency supply is high the price will be low even the volume is high. but if volume is high and supply is low then price would go up means people are trading but supply is not much. that is how it works.

[Ola22 197]

It is one of the basics of the economics world and the simplest one at all. Certainly, there is a relationship between volume and price, which we call the theory of supply and demand, the more demand for a commodity, the higher its price, and vice versa.

[Malik Abi 0]

Volume is the amount of money traded, so it covers all trading activities such as purchasing and selling. The price rises as the supply of cryptocurrencies falls and the market for it rises. As a result, the trade rate does not imply that demand is higher than supply, but rather the reverse.

[Nonahassan 915]

Things are very self-explanatory, so you have to rely on the explanation that you have explained. I see that your question is very self-explanatory, but in my opinion, I am that the higher the volume we all have, the more fluctuations in price

[abohasnn9 2401]

My friend is a really good question, and the answer to it is the duty of the elderly, so the daily volume of a currency is the rate of its circulation by selling and buying together and not by buying only so that when the trading volume of a currency increases significantly, its price does not necessarily increase, it is related to its trading volume by buying this way it rises and if the trading is by sale it will  The decrease is related to the purchase, not the trading volume, and the currency will rise. Thank you very much

[Alan Johns 258]

If a coin has bigger volume and a large available supply it's price would be low and if it's available supply is less than the price will increase directly proportional to the demand.

[Reaz2021 25]

Traders usually trade with currencies that have a high volume because high volume means buying and selling in large quantities which means that this particular currency is popular for trading.

If the price of a currency rises and the amount is higher, it shows that many people are trading with that currency and its price will continue to rise further.

Conversely, if the price of a currency goes down and its quantity is low, it means that only a small number of people are buying or selling it.

Thus, there is a close correlation between volume and price.

If you look at the history of Bitcoin, you will see that in most cases, whenever the volume was high, the price was also high.