Decreasing volume during a decline is quite common in the crypto and stock markets, but to truly understand it, you need to look at it from several perspectives.

**What is a volume-decreasing decline?**
Simply put, it’s when the price is falling, but the trading volume is much lower than usual. Imagine a coin that had an average daily trading volume of 1 million units a few days ago. On a certain day when it drops, only 500,000 units are traded—that’s a volume decrease. Market activity clearly slows down, and it’s less lively.

**What does this reflect?**
First, it indicates a change in investor sentiment. People lack confidence in the future market, so fewer are buying, and sellers aren’t in a rush either. Some hold onto their positions without selling or adding, a typical wait-and-see stance.

Second, it shows the balance of power between sellers and buyers. Lower trading volume may suggest that the selling pressure is weakening, and sellers have fewer bullets left. But the problem is, buyer momentum is also insufficient; new capital isn’t eager to enter, so the price lacks support and continues to fall.

**What does this mean at different stages?**
A volume-decreasing decline at a high level should raise alertness—it’s often a sign that big funds are quietly exiting, and a downward reversal may be imminent. If it occurs during the mid-downtrend, it indicates the market hasn’t stabilized yet, confidence hasn’t recovered, and the downtrend might continue. If the decline is nearing its end and volume is still shrinking, the bottom may be near, but this needs to be confirmed with other technical indicators.

**Practical advice**
Don’t judge solely based on a volume-decreasing decline signal. The situation varies between individual tokens and the overall market— a volume decrease in a specific token might be a manipulator’s attempt to shake out and absorb orders, but a market-wide volume decline is more likely a short-term correction or a prelude to a larger trend. Use indicators like moving averages, MACD, and consider fundamentals for a comprehensive assessment. Relying on a single indicator can easily lead to pitfalls.