Question #400 ·
How can on chain metrics like trading volume and large investor transactions signal market trends?
- They show daily step counts of miners tracked by fitness wearables
- Rising volume and whale trades indicate strong participation potential trend reversals Right answer
- They forecast football match outcomes based on cryptocurrency fan voting data
Why is this the correct answer?
This is correct because on-chain metrics like increased trading volume signal growing market activity and liquidity. Large investor, or whale, transactions can drive prices up or down and often precede significant moves. Beginners should track volume spikes and whale behavior to anticipate possible trend continuations or reversals.