Santiment: The volume of the encryption market has been continuously decreasing since February 27, and market sentiment is becoming cautious

BlockBeats news, on March 13, Santiment posted on the X platform, stating that ‘since the peak volume on February 27, the overall volume of the crypto market has continued to decline (traders were optimistically Buying the Dips at that time). After further decline in the past two weeks, traders’ behavior has shown signs of exhaustion, despair, and Capitulation emotions. When the volume of major cryptocurrencies continues to decline, even during a slight price pump, it usually means that traders’ enthusiasm is waning. In this situation, traders become more cautious, indicating that they may not believe the current pump trend can sustain. Furthermore, the contraction of volume during a minor Rebound may be an early signal of weakening market momentum. If there is a lack of strong buyer support, the price pump may quickly lose momentum, as there is not enough capital inflow to maintain the upward trend. This may mean that any Rebound is only temporary, and the price still faces the risk of further decline. The reduction in volume during a minor Rebound does not necessarily directly constitute a bearish signal, but volume reflects the market participation of retail and institutional traders. If both are waiting for each other to drive the Market Caprise for the next move, the market may stagnate, showing low Fluctuation or even a slight downward trend. For a healthier, more sustainable market recovery, long positions typically hope to see prices and volume rise synchronously. Market sentiment may remain cautious until trading activity noticeably picks up.’