Here’s how traders were alerted to RUNE’s, FUN’s, WAVES’ and KNC’s big rallies last week
A digital asset’s price rally rarely comes out of the blue. Before the token’s market value explodes, some collateral forces come into motion. The asset can suddenly attract abnormally high online attention, its trading volume can go up dramatically, or some market-moving information can go public that triggers the first two examples. Mastering the art of crypto trading means learning to see those subtle cues early on.
Spiking trading volume is one of the signs that something interesting might be brewing around a crypto asset. Often, trading volume simply follows a price trend, with the coin entering a virtuous circle where its rallying price attracts more traders, boosting the volume accordingly. In other cases, abnormally high volume points to robust liquidity and rising investor interest, which can underpin further waves of appreciation.
One of the ways to get alerted to potentially informative trading volume pumps is the Unusual Trading Volume bar on the dashboard of Cointelegraph Markets Pro, Cointelegraph’s subscription-based data intelligence platform.
Last week, four out of the 10 tokens that showed the greatest increase in week-to-week trading volume flashed weekly volume highs before their prices peaked. Here’s how traders could have profitably put this information to work.
THORChain’s RUNE had a big week, with a Terra integration and upcoming mainnet launch exerting huge upside pressure on the token’s price. The breakthrough moment came on March 1 when RUNE took off from around $3.70 and breached $5.80 in less than a day. Trading volume spiked alongside the price, with the highest volume of the week coming after the first price peak. Traders who took heed of the volume dynamics were in for a continued rally, as
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