liquiditymatters

$RAVE
The Liquidity Mirage: Why Volume Matters More Than Price
Chasing green candles without looking at the underlying data is a recipe for disaster. In the crypto market, price can be easily manipulated if there isn't enough organic liquidity to back the move. Understanding the difference between a healthy trend and a "liquidity trap" is what separates profitable traders from exit liquidity.
The Survival Checklist:
Verify the Volume: A price pump on low volume is often a "bull trap" designed to lure in retail buyers before a major sell-off.
Watch the Spread: If the gap between buy and sell orders is too wide, you may find it impossible to exit your position during a sudden crash.
Avoid the FOMO Peak: Buying at the literal top of a vertical move without a pullback is a high-risk gamble that rarely pays off.
The Bottom Line: Don't let a fast-moving chart blind you to the risks of evaporating liquidity. It is better to miss a pump than to be trapped in a position you cannot sell.
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