Santiment: The trading volume of the crypto market has been declining since February 27th, and prices still face the risk of further declines

Santiment posted on platform X, "Since the trading volume peaked on February 27th, the overall crypto market's trading volume has been continuously declining (at that time traders optimistically bought at low prices). After a further decline in the past two weeks, traders' behavior shows signs of fatigue, despair and surrender. When the trading volume of major cryptocurrencies continues to fall, even during periods of slight price recovery, it usually means that trader enthusiasm is waning. In this situation, traders become more cautious indicating they may not believe that the current upward trend can continue. Moreover, shrinking trade volumes during minor rebounds could be an early signal of weakening market momentum. If there is a lack of strong buying support, price increases may quickly lose momentum as there are not enough funds flowing in to sustain an upward trend. This could mean any rebound is only temporary and prices still face risk of falling again. A reduction in trade volumes during minor rebounds does not necessarily directly constitute a bearish signal but reflects retail and institutional traders' market participation levels. If both are waiting for each other to drive growth in market value before making their next move then markets might stagnate showing low volatility or even slightly downward trends. For healthier and more sustainable market recoveries bulls typically hope to see simultaneous growth in price and trade volumes; until trading activity noticeably warms up caution will likely remain prevalent."