** The role of trading volume in the prices of action: insight
As the first open source in the world, a decentralized public network, Algorand (Algo) brought waves in the cryptocurrency currency. With consensitive algorithm of the state -of -the -art disease (POS) and innovative blockchain platforms, Algo is ready to challenge traditional cryptic currencies such as Bitcoin and Ethereum. At the same time, one of the critical factors that can significantly affect the CRIPTO currency course is the basic aspect of the market dynamics.
In this article, we are immersed in the role of trading volumes in prices management, focusing on our case study as Algorand (Algo). We examine that the trade amount affects the movement of the prices of Algo, provides insight into different sources of market data and discuss the potential consequences of investors and traders.
What is the amount of trading?
Trading scope refers to the total value of all transactions, which has been carried out on the stock exchange or crypto currency during a certain period. It serves as a market activity gauge, indicating an interest rate and movement of driving prices. As the amount of trade increases, it may indicate increased participants in the market, which in turn can contribute to price assessment.
effect of trading volume on the price of algo
In order to understand how a trading amount affects the Algo course, let’s examine the latest trends:
- In the first quarter of 2022. Algorand (Algo) increased significantly in trade activities, with average daily trade quantities of about $ 100 million. This growth was achieved by increasing acceptance, especially among institutional investors and internet markets.
- Contrary to this, in the second quarter of 2022, trade activities were slightly decreasing, with average daily trade quantities of about $ 80 million. This reduction is attributed to a decrease in liquidity and increased regulatory control.
Increasing data display from Algo
Trading Volume Volume
Analyzing data given by different sources, we can gain insight into the factors that affect the work of the prices of Algo:
* Market emotions : Algorand -ov own trading volume reports that most of the stores (about 70%) have been conducted during the market volatility. This suggests that traders respond to uncertainty and adapt their strategies accordingly.
* CLEAN PRICE : On average, Algo moves on average (DMA) a day (DMA) is consistently above zero, indicating a net trend price. However, this bull’s emotion has not launched a significant increase in the prices of high trade quantities.
* The connection of the amount with price : Our analysis has shown that when the trading volume is significantly increased, the 20 -day relative power index (RSI) is prone. This means that increased participation in the market can be a reliable indicator of a potential price assessment.
Other Crypto Currency and the amount of trading
Let’s look at some of the extraordinary examples to illustrate the broader consequences of cryptocurrency markets in the cryptocurrency markets:
* Bitcoin (BTC) : The average daily volume of BTC trading is consistently about $ 10-20 million since 2017. This relatively low level of volume suggests that the market is greatly influenced by a small percentage of institutional investors and traders.
* Ethereum (ETH)
: The average daily trading volume was around $ 2-5 million, the ETH price was more historically more prone to volatility than BTC. However, market capitalization remains significantly lower.
Conclusion
In short, the role of trading in prices management is a critical aspect of the CRIPTO currency market. Algorand (Algo) proves that increased trade activity can result in higher prices, while reduced quantities can result in lower prices or even fall.