Analysis of cryptocurrency negotiations: Guide to unlocking market information

Cryptocurrencies are becoming more and more popular over the past decade, and many investors try to use their growth potential. However, the record, which can provide valuable information on the market results of cryptocurrency, is the size of negotiations. In this article, we will deepen the method of analyzing the number of negotiations and discovering significant patterns in cryptocurrency markets.

What is a volume of negotiations?

The size of the negotiations refers to the total amount of cryptocurrency negotiated for a specified time, usually measured in XRP (XRP) units per unit. This is a necessary indicator of traders and investors, because it can help identify market trends, price movements and possible breaks or resignation.

Why analyze the volume of negotiations?

Trade volume analysis offers several advantages:

• Familiar on the market : A large number of negotiations usually indicate a strong market feeling in which buyers are more active than sellers.

• Price reactions : A significant increase in the volume of negotiations can signal an elusive price movement, such as escape or revival.

• Risk management : Analysis of trading volume helps investors determine the level of break and position, minimizing possible losses.

How to analyze the negotiating volume

To obtain valuable information from the analysis of negotiating the volume, follow the following steps:

1. Identify the main periods

• See historical data to identify certain terms that show high or low trade volumes.

• Focus on the main milestones, such as market crack, rejection or resignation.

2. Line of the lounge of the story

• Use graphics software (for example, TradingView) or on platforms on the line (for example Coinggecko) to delete the trade volume lines for many terms.

• Analyze the tilt and direction of the line to identify the patterns.

3. Identify trends **

• Look for repetitive trends such as:

+ Growing trend lines

+ Reduction of low trend lines

+ Optimistic wedges/with high compliments

4. categorizes the volume of negotiations by price

• Divide the volume of negotiations into categories based on price movements:

+ Low volume (LVL): Usually used for small low -value transactions.

+ Average volume (MV): used for medium -sized negotiations.

+ High volume (HV): reserved for transactions of high and high value.

5. Rate the volume of negotiations in context

• Consider the number of negotiations with other market indicators, such as:

+ Price movements

+ Market capitalization

+ Liquidity indicators (for example, offer distributions/questions)

Popular cryptocurrency negotiations

Here are some examples of popular cryptocurrencies and corresponding commercial volumes:

|. Crypto Commercial volume (XRP)

|. — | — |

|. Bitcoin 1.5 billion + |

|. Ethereum | 2.5 billion + |

|. Ripple (XRP) 500 million – 700 million

|. Litecoin (LTC) 50 million – 100 million

Example of negotiations of volume analysis

Suppose you identified the standard of trading volume for Bitcoin:

• Historical data show that the price of cryptocurrency has been increasing since January.

• Analyzing the volume of negotiations, you realize:

+ The high peak of the volume on February 10, coincides with a significant price increase.

+ Moderate volume drop from February 15 to February 20.

Based on this analysis, his application may be:

“The price of Bitcoins probably breaks the resistance level of USD 18,000 and will continue the upward trend. A large number of negotiations on February 10 suggests that traders are sure of the potential of cryptocurrency. “

Application

The analysis of the negotiations volume offers a powerful tool for market insights, providing valuable information about market feelings, price movements and possible progress or resignations.

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