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TOKEN WITH SUDDEN VOLUME SPIKE — WHAT DOES IT MEAN? 📊
When a token’s trading volume
suddenly increases significantly,
it signals unusual market activity.
Volume is attention.
And attention brings volatility.
Common reasons for sudden volume spikes:
• Breaking news or announcements
• Listing on a major exchange
• Narrative rotation
• Whale accumulation or distribution
• Social media hype
But volume alone is not bullish.
Important questions to ask:
– Is price moving with volume?
– Is it breakout or fake breakout?
– Is open interest increasing?
– Is liquidity deep enough?
Healthy move →
Price + Volume rise together.
Risky move →
Volume spikes, price rejects quickly.
Sudden volume can mean opportunity.
Or it can mean exit liquidity.
Smart traders don’t chase candles.
They analyze structure.
Watch volume.
Watch reaction.
Watch confirmation.
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