How can I detect early signs of liquidity exhaustion in high-volatility markets?

[chainsniff]

Liquidity exhaustion often shows up through widening spreads, declining bid-depth on order books, and increased slippage on medium-size market orders. On-chain liquidity pools may also show heightened imbalance or unusually thin depth on DEXs. Watching CEX order-book heatmaps, CVD (Cumulative Volume Delta), and DEX pool depth is key.

[Nahid Hossen]

Wicks and shrinking volume near key levels usually warn that liquidity is thinning.

[Rimon Khan]

When spreads widen and order books hollow out, volatility tends to spike fast.