Relationship Between Volume and Price

[williamz902 696]

I'm wanting to get other ideas and opinions on the relationship between volume and price of a coin. For example, what does it mean when:

1. Volume is really high, but price is still low?
2. Volume is high and the price is high?
3. Volume is low and price is high?
4. Volume is low and the price is low?

Any ideas, opinions and tips are welcome in this regard.

[Grace 236]

Volume can be high but for example if You trade with ripple there are 30B ripple right now...So it's price wouldnt be so much.But if You trade with BTC,There will be 21m BTC in the world so it is not much.So it's price would be higher if it is trusted too

[lucky80 1046]

5 minutes ago, williamz902 said:

I'm wanting to get other ideas and opinions on the relationship between volume and price of a coin. For example, what does it mean when:

1. Volume is really high, but price is still low?
2. Volume is high and the price is high?
3. Volume is low and price is high?
4. Volume is low and the price is low?

Any ideas, opinions and tips are welcome in this regard.

Simple answer

Simple answer
1. People are trading. The coin supply is high
2. People are buying. Total coin suply is low to moderate.
3. Fewer people and maybe the dev only make the trade.
4. Coin is death

[Caporetto 327]

Look at these, it usually follows pretty accurate, but dont follow it blindly, same was at 10k - price was going down, open interest was sky high, and market makers took the oportunity to dump hard on retail, buy the dip investors

 

[cryptokram 102]

The volume showed how many traders are doing activity for the coins. In this way you will see if the token are good or not. While the price shows the direction were the coin goes if it is going down or up, so in this concepts our skills will be apply in it. 

[duncun007 3577]

The volume is the marketcap of the token no matter what price did the token start with. Whenever volume rise it means people are buyers the coin which means that the price will rise.

[iloveyobit 6599]

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

the whales are accumulate the coin 
2. Volume is high and the price is high?

the buyers are too much and the coin is top gaining 
3. Volume is low and price is high?

a pump is happening here 
4. Volume is low and the price is low?

this coin is dead 

 

good luck 

[Mathers 295]

There are some mistakes with your analysis because you can only determine if a price is low when it is below the ico/ieo price, and when there is huge volume price will only approach liquidity, it doesn't mean price will have to be very high or very low, volume only provides liquidity.

[masterfocus 55]

High volume only guarantees a small spread and, in consequence of that, buying and sell almost at the same price. The price will go up and down fast or keep it at around the same price. It has no correlation, in my opinion.

[Lubruselu 2803]

I guess both of them volume and price doesn't have any relationship. Because volume consider how much money invested on that coin of that day or month but price it is consider of investors of the coin about buying price and selling price at that time.

[Brushless4500KV 4214]

Traders usually trade with coins that has a high volume because high volume means high number of buys and sells which means that particular coin is popular for trading. If the price of a coin increases and its volume is high, it shows that many people are trading with that coin and its price will more likely to continue going up. On the contrary if the price of a coin goes down and it also has a low volume, it means that only a small amount of people are buying or selling it.

So, there is a close connection 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 high too.

Edited November 15, 2019 by Brushless4500KV

[Cryptominded 704]

On 10/22/2019 at 12:57 PM, alther said:

1 and number 2 is still be accept as market can still going . in number 3 and 4 is signal for live and dead of the market beware / becareful of this.

what i'm affraid is to be number 5. No volume ..........how i can sell my coin. that mean my coin is dead. Look so funny but we hate this don't you ? 

I think number 3 in most cases is the picture of most pump and dump coins, they are everywhere in the cryptoworld and you can't take it from them that they're no push overs. Number 5 as you pointed out are scams, no one should have wasted  a second or a satoshi on.

[Brushless4500KV 4214]

Do you want to say that volume is always more important than price? Lets take XRP coin for example. This coin has a very low value. Its price is only a few cents. But it seems to have a rather good market volume. Do you think it is safe to trade with XRP even if it is almost worthless? If you want to choose between BNB ($14.78), Litecoin ($45) and XRP ($0.21), what would you choose if you take into consideration their different volumes? BNB (25.000), XRP (19.000) and Litecoin (14.000).

According to your explanations and above data, if I want to rank the coins it would be as follow:

BNB > XRP > Litecoin

The reason? BNB has both good value and high volume so it is the best and safest coin to trade.

XRP has the least value but good volume so it is better than Litecoin.

Litecoin has good value but low volume so it is not safe for trading.

[Scottsummers 347]

It's interesting to see how many different answers each person has for this question. I'm not sure the answer either for sure. So many of these factors can be in play. Sometimes volume seems like witchcraft to me. I'm going to take some of these ideas and try apply them though. Volume is the one thing that I really don't get fully. 

[CryptoBoy20 170]

On 10/21/2019 at 7:30 AM, williamz902 said:

I'm wanting to get other ideas and opinions on the relationship between volume and price of a coin. For example, what does it mean when:

1. Volume is really high, but price is still low?
2. Volume is high and the price is high?
3. Volume is low and price is high?
4. Volume is low and the price is low?

Any ideas, opinions and tips are welcome in this regard.

Volume mean supply that's show the supply in the market if volume is high that's mean supply is high but price is low because of a few trade.

volume is high that's mean supply is high & price is high that's this coin has traded enough to get his value high. 

when volume is low that's mean supply is low it happen with fake coin  & the price stay high for a short time.

Volume low & price low that's mean this is a dead coin won't rise again.

[rekter 8129]

On 10/21/2019 at 10:30 AM, williamz902 said:

I'm wanting to get other ideas and opinions on the relationship between volume and price of a coin. For example, what does it mean when:

1. Volume is really high, but price is still low?
2. Volume is high and the price is high?
3. Volume is low and price is high?
4. Volume is low and the price is low?

Any ideas, opinions and tips are welcome in this regard.

Sad to say but volume is now irrelevant in most cases. Wash trading took away a possibility to study coinmarketcap overall volume as an indicator for accumulation for example.

 

But your question is too broad, and don't have a single good answer, as there are many more aspects like trend you have to add on that equation.

 

You might want to check technical analysis videos on ta and volume.

[iloveyobit 6599]

On 11/27/2019 at 9:28 AM, Voltz777 said:

If the total supply will go lower the price has a high chance to increase, but if the supply geta higher the price get more lower for sure in the market. 

Not necessarily, take, for example,IOTA coin totall 

2,779,530,283 *  coin , but the price of IOTA i moving fast and now the price is above 0.2 $ . 

[Agios 1763]

Because the volume of crypto distribution is still uneven, so if someone sells or buys crypto in large quantities, the price changes immediately. Volume is also the amount of active trading on crypto. So the greater the volume, the better for the crypto so that it will be easy to sell / buy but if the volume is low the seller must wait for a long time the buyer. Volume as a crypto metric is potential or not because volume shows people's interest in the crypto and market liquidity. But the existence of wash trading makes fake volume so often confuses us.

[dinabolt 514]

Simple explanation price always follow volume, when up happen many buyer take control and they only can get product in high offer. That's normal and we only need to know why buyer / seller create many activity that time, find the reason and you'll have position to open transactions.

[kazumina91 148]

Of course there is a close relationship, if the amount of smoke increases, the price will increase and the opposite will be the same, since it is related to the total amount so many people will be high soon.

[tranhungritc 191]

This relationship is never separate, it's closely related, just like the volume of transactions and the price is the same, the ratio is also technical, the more investors invest, the higher the market grows.

[duncun007 3577]

18 hours ago, Superred said:

For number 1 i think it because most people dumped the coins so although volume high but it will not guarantee the price will always be high and i have seen too coins with low volume but have high price it because the price more likely to pump

well when the volume of money in the coin is high and the coin is still low in price that means the coin might have very high supply like we see in XVG, DGB  and NPXS they all have good volume but the price is still low because there is too much supply.

[Lubruselu 2803]

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 coins

[Yanadia 1517]

Volume  of a coin is the total value of all coins in circulation and is one of the metrics used to determine value of couns and will impact to the price. 

[Naga 1250]

On 10/21/2019 at 10:30 AM, williamz902 said:

I'm wanting to get other ideas and opinions on the relationship between volume and price of a coin. For example, what does it mean when:

1. Volume is really high, but price is still low?
2. Volume is high and the price is high?
3. Volume is low and price is high?
4. Volume is low and the price is low?

Any ideas, opinions and tips are welcome in this regard.

the volume of the coin depends on many things and one of them is how many investors are buying the coin because the coin could be a good project but still investors might not be interested in it.