Can a Liquidity Pool with High Volatility but Low Volume Experience High Slippage?

Yes, a pool with high volatility and low volume is highly susceptible to high slippage. Low volume implies low liquidity (shallow pool), meaning even moderate trades cause a significant shift in the token ratio.

High volatility exacerbates this, as large price movements can trigger trades that quickly exhaust the shallow reserves, resulting in a large difference between the expected and executed price.