Huge pump and then crabbing at low volume

lucacrebbe

Active Trader
Jun 26, 2017
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Could you explain this pattern?
Price comes back to all time highs then it crabs there a little bit on low volume. Volume gets smaller and smaller by the time. What does this mean? Is it bullish or bearish. Here the chart. It's ChainLink
https://i.ibb.co/C7hDYyJ/priceup.png
https://coinmarketcap.com/de/currencies/chainlink/
low volume = no one wants to sell? But we could also say that no one wants to buy ... so that ''no one wants to sell'' it's pointless ihmo
here the chart when it was 3.63 some months ago
https://i.ibb.co/7nfnsZc/bbff.png

the intersting thing tought is that every low volume is preceding a pump. Why?
 
Last edited:

Enivid

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Low volume only means that there is low interest in trading of that asset at those prices. This could be for a number of reasons - for example, lack of interest in this asset (this is usually accompanied by widened spreads). This could also be due to the fact that the majority of sellers would like to sell at a much higher price than the current, while the majority of buyers would only but at a price much lower than the current - so they meet only occasionally somewhere in between.
 

lucacrebbe

Active Trader
Jun 26, 2017
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This could also be due to the fact that the majority of sellers would like to sell at a much higher price than the current, while the majority of buyers would only but at a price much lower than the current - so they meet only occasionally somewhere in between.

How could someone get the idea of ''where the sellers'' gonna start selling? What instrument would you use? This is crypto I have order book and whale's addresses.
Also the coin historically pumped very much after low volume periods
 

Enivid

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If you can see limit orders, you can see where the major part of sell and buy volume is concentrated. But that isn't fool-proof of course because lots of potential traders aren't putting any orders now but will start doing it once the price goes where they would like to trade.
 

Uaredaty

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Jan 19, 2019
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In order to make things simple, my suggestion is to focus on support – resistance lines. Usually traders orders are placed around these levels, so you dont have to seek price at which sellers will start selling, instead seek SR lines.