Why is it highly likely that the price can continue to rise after a decrease in volume during the price-volume relationship?
A decrease in volume represents consensus, a unified willingness to buy or sell.
An increase in price with decreased volume indicates strong willingness from large funds to enter the market.
However, did these large funds enter just to push up the price and then immediately sell? What do they gain from that?
What they definitely gain is the money from retail investors who follow the trend after them, creating opportunities for retail investors to continue investing and gradually push up the price. During this time, the large funds will also reinvest some money to boost the rising sentiment, solidifying the determination of retail investors to chase the price higher. Once the price reaches a certain height, they will gradually sell off, leaving retail investors who cannot see the trend to take over.
Therefore, this is the essential reason why the price can continue to rise after a decrease in volume.
However, here's the key! The premise for the price to continue rising after a decrease in volume is that the coin is in a new low-start phase. If it is at an absolute sell-off stage or at the peak of a parabolic rise, a sudden increase in price with decreased volume raises more suspicion of a trap for buyers.