Price-up with falling volume (bearish divergence)

Rationale:

Rising price on thinning volume implies fewer participants supporting the move; it may be driven by limited flow or concentrated buyers and is therefore fragile.

Implementation:

Compute normalized volume (volume divided by 30‑day median) and compare peaks to price peaks; flag events where price peak > prior peak and volume peak < prior peak by a configurable threshold, and confirm with RSI divergence or MACD weakening.

Use multiple timescales (intraday, daily, weekly) for robustness.

Signals and actions:

Bearish divergence is a warning for potential pullback—consider tightening stops, reducing size on breakouts that lack volume confirmation, or waiting for retest with recovered volume before adding exposure.

For market makers, this pattern suggests a higher probability of sudden order flow reversals.

Caveats:

In low-liquidity altcoins occasional false signals occur; some rallies can be led by news that temporarily disconnects volume signals.

Therefore, combine this technical divergence with on-chain flows and order book depth to separate genuine distribution from news-driven accumulation.

As a repeatable technical monitoring rule for LSK, price-volume divergence helps manage execution risk and position sizing during rallies that may not be broadly supported.