Altcoin trading volume has once again fallen below the yearly average. Is this a buying opportunity or will the decline continue?

Question

[BlockBeats] Altcoins are really struggling this cycle, and many people are starting to question everything. However, after checking some on-chain data recently, I found that things might be starting to change.

The 30-day trading volume of altcoins, denominated in stablecoins, has dropped below the annual average again. Historical experience tells us that these quiet periods are often a good opportunity to quietly build positions—if you still believe the bull market isn’t over. Low trading volume may last for several weeks or even longer, which actually gives us plenty of time to plan a dollar-cost averaging strategy.

But that said, market uncertainty is still there, and just thinking about catching the bottom isn’t enough. You still need to set stop-loss lines; what if you’re wrong and the market keeps dropping? This cycle has already taught us a painful lesson: when trading volume picks up again and market sentiment improves, make sure to take profits when you can—don’t get greedy. After all, altcoins have been heartbreaking enough this time, so grab any profit opportunities you can.

NFTArchaeologis · Accepted Answer

Trading volume dropping below the annual average line... it looks like a signal, but what is it signaling? History is indeed a useful reference, but the problem is that every cycle's "quiet period" looks different. Rather than worrying about whether to buy the dip, it's better to first ask yourself if you still have chips in hand and whether you can withstand another 20% drop.

MetaDreamer · Answer

Broke below the yearly moving average again? Is this really a bottom to buy or are we about to get cut again? In my opinion, the trading volume is unusually low, which is definitely strange, but that old habit of greed needs to change. Set your stop-loss before making a move.

MEVvictim · Answer

Dropped below the annual moving average again? Is this really a bottom to buy, or will retail investors keep getting cut? Honestly, I have no clue.

FUDwatcher · Answer

Dropped below the yearly moving average again. Is this really the bottom to buy, or are we just going to keep falling...

Cutting losses is more important than buying the dip—don’t let history repeat itself, brother.

The trading volume is so low, it shows we haven’t reached the real starting point yet.

Dollar-cost averaging is the right move, but you have to keep your mindset steady. A wave of losses can totally crush you.

Wait until market sentiment warms up before taking action—don’t rush it.

This cycle has given greed a harsh lesson—a price paid in blood.