Spiking spot trading volumes can be a sign of a euphoria or FOMO phase, often coinciding with crypto market caps approaching record highs.

On November 12, spot trading volumes on Binance reached $60 billion, as crypto market caps approached their previous ATH.

However, trading volumes have since halved, while crypto market caps have entered price discovery mode.

This drop in trading activity may indicate the market is taking a breather, with investors being more cautious.

This also helps reduce volatility, lowering the risk of intense selling pressure.