Analysis: Altcoin trading volume falls below annual average, market enters "accumulation zone for dollar-cost averaging"
BlockBeats News, December 8, CryptoQuant analyst Darkfost recently published an article stating that in the current cycle, altcoins have generally underperformed, making investors more cautious in their selection of altcoins. However, the latest trading volume data suggests that the market may be entering a stage more favorable for dollar-cost averaging (DCA) into altcoins.
The latest data shows that the 30-day trading volume of altcoins denominated in stablecoins has once again fallen below the annual average level. Historically, this range has often been regarded as a "positioning period," suitable for investors betting on the continuation of the bull market trend to gradually build positions.
The analysis points out that this low trading volume phase may last for several weeks or even months, providing a relatively ample time window to optimize DCA strategies. However, given the current high level of market uncertainty, investors need to simultaneously establish stop-loss and invalidation strategies to guard against further market declines. At the same time, this cycle has fully demonstrated that when trading volume expands again and sentiment recovers, it is crucial to take profits in a timely manner.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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