These tokens saw the biggest trading volume pumps last week. How could traders benefit?
An uptick in trading volume is one of the key components of a digital asset’s healthy market outlook. It indicates both robust liquidity and a surge in fellow traders’ enthusiasm for the token. The relationship between the asset’s price and trading volume is a nuanced one: Volume spikes often trail strong rallies as more and more traders hop on the bandwagon in the hopes of a ride to the moon.
Yet, in some cases, it is surging trading volume that leads to price appreciation. In such a scenario, getting alerted to anomalous trading activity around a token can help crypto investors to spot the early signs of an impending rally. Regardless of whether the trading volume spikes precede or follow the price action, the assets that exhibit unusual behavior on this key metric merit a closer look.
The five assets featured below showed the greatest week-to-week increases in trading volume last week and were featured in the Unusual Trading Volume section of Cointelegraph Markets Pro dashboard. In three cases out of five, anomalous upticks in trading volume foreshadowed major price increases.
FRONT, a token representing DeFi aggregator Frontier, topped the chart of last week’s trading volume movers chart with a 3041% increase on the heels of its listing on the Korean crypto exchange Bithumb. As evident in the graph, the Jan. 26 listing announcement had first triggered a price spike as the coin’s value almost doubled, soaring from $0.41 to $0.78 in less than 6 hours. FRONT’s trading volume followed the price dynamics closely, peaking the day after the announcement.
QuarkChain (QKC) saw two dramatic trading volume increases last week, the greater one (+2862%) coming last and following the coin’s weekly price high. In a curious plot twist,
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