5 On-Chain Signals Smart Crypto Traders Never Ignore
Published: 2025-05-25
Status:
Available
|
Analyzed
Published: 2025-05-25
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
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Onchain data analysis can lead to more informed predictions of future price movements in crypto.
"armed with this information you can make more educated predictions about future price movements"
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An increase in daily active addresses suggests higher demand, which is likely to lead to price increases for a cryptocurrency.
"more active addresses means there's more demand for that crypto and more demand means that prices are likely to go up"
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A decrease in daily active addresses indicates falling demand, which is likely to lead to price decreases for a cryptocurrency.
"a declining number of daily active addresses suggests that the demand for that crypto is falling and prices are likely to fall as well"
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If crypto prices rise while daily active addresses remain flat, it may indicate price manipulation by large holders (whales), suggesting an unsustainable rally.
"if you see that prices are rising but the number of daily active addresses has stayed relatively flat then more often than not this signals that prices are actually being manipulated by whales"
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A rising number of daily active addresses while the price is falling is a bullish signal, indicating increasing demand and a potential upcoming price reversal.
"if you see that a crypto's price is falling but the number of daily active addresses is rising then this is actually a bullish signal and that's because it signals that demand is rising suggesting that a reversal to the upside could happen at any moment"
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When Total Value Locked (TVL) in a DeFi protocol grows faster than the token's price, it suggests increasing utilization, borrowing, and strong native demand within the ecosystem.
"you want to see TVL rising faster than the token's price and this often indicates growing utilization and borrowing within the crypto ecosystem especially in DeFi platforms as signaling real native liquidity and strong demand"
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A decline in TVL while the token price remains stable or increases may indicate declining trust or capital flight from a protocol, with the token price likely to follow.
"if TVL is declining while the token price holds steady or even rises it could be a red flag that liquidity is leaving the protocol and this might point to reduced levels of trust or capital moving to other projects as liquidity drops the token's price is likely to follow suit"
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A rise in stablecoin supply often signifies increased capital flowing into DeFi, which can boost liquidity and potentially drive prices up.
"when stable coin supply rises it often signals increased capital injection into DeFi protocols boosting liquidity and potentially driving prices higher"
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A low stablecoin supply ratio indicates significant liquidity available on the sidelines, suggesting strong buying power that could fuel a crypto rally.
"a low stable coin supply ratio means that there's a lot of stable coin liquidity sitting on the sidelines ready to be deployed into the market and this suggests high buying power for stable coins potentially fueling a crypto rally"
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A high stablecoin supply ratio implies less available liquidity, indicating weaker buying power and a reduced likelihood of a sustained market rally.
"a high stable coin supply ratio means most stable coins are already in use leaving less liquidity available and this suggests a weaker buying power and less potential capital flowing into the markets making a sustained rally less likely"
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Large-scale stablecoin minting often indicates significant capital being injected into the crypto market, foreshadowing increased trading activity.
"large-scale minting happens when investors deposit large amounts of capital into the crypto market and this foreshadows a sharp increase in trading activity"
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Lower crypto balances on exchanges suggest less liquidity, leading to increased price volatility, typically to the upside, as more investors are holding (bullish sentiment).
"when exchange balances are lower this means that there's less liquidity on these exchanges which results in crypto prices being more volatile usually this volatility is to the upside since less exchange balances mean that more investors are hodling which implies more investors are bullish"
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High crypto balances on exchanges are a bearish signal, indicating that investors are likely depositing crypto to sell.
"when exchange balances are high this is a bearish signal because it indicates that investors are sending crypto to exchanges presumably to sell"
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Significant outflows of crypto from exchanges are a bullish signal, indicating that investors are choosing to hold their assets.
"heavy outflows from exchanges indicate that investors are hodling which is a bullish signal"
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Whales now strategically move crypto to exchanges, observing market reactions to sell gradually during price pumps rather than causing immediate sell-offs, to maximize profits.
"whales have grown savvy to the market reactions and now they use this visibility to their advantage so rather than selling immediately an action that could trigger a panic selling and drive prices down whales will often wait they will let the market react observing the initial sell-off and wait for the subsequent dip buying they will then begin to gradually sell during the pump allowing them to capitalize on the positive price action without disrupting it maximizing their profits in the process"
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If a large percentage of crypto holders are in profit, it suggests the market may be overvalued and a good time to consider selling.
"when nearly everyone's making money it's only a matter of time before they cash in on those gains so if you identify this trend happening then the market could be overvalued and it may be a good time to sell"
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If most crypto investors are at a loss, it suggests the market may be undervalued and a good time to consider buying.
"if it's the other way around and most investors are sitting on a loss the market is probably undervalued and it may be a good time to buy"
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Rising prices with flat daily active addresses could signal unsustainable rallies and an impending price reversal due to whale manipulation.
"if you see that prices are rising but the number of daily active addresses has stayed relatively flat then more often than not this signals that prices are actually being manipulated by whales naturally these rallies are not sustainable and a price reversal could be imminent"
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A high Net Unrealized Profit/Loss (NUPPL) indicator suggests that prices may be overheated, signaling a potential time to sell.
"when the nupal indicator starts to get high then this can often indicate that prices have become overheated and it may be a good idea to sell"
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A low Net Unrealized Profit/Loss (NUPPL) indicator suggests the market is still developing, signaling a potential time to buy.
"conversely if null is low then the market is just getting warmed up and it may be a good time to buy"
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Falling prices with rising daily active addresses is a bullish signal indicating increasing demand and a potential upward reversal.
"conversely if you see that a crypto's price is falling but the number of daily active addresses is rising then this is actually a bullish signal and that's because it signals that demand is rising suggesting that a reversal to the upside could happen at any moment"
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Effective onchain analysis requires combining it with technical and fundamental analysis.
"the answer lies in combining it with the other two forms of analysis technical and fundamental"
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TVL rising faster than the token's price indicates growing utilization and demand within crypto ecosystems, especially DeFi.
"you want to see TVL rising faster than the token's price and this often indicates growing utilization and borrowing within the crypto ecosystem especially in DeFi platforms as signaling real native liquidity and strong demand"
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Analyzing bridged TVL can identify cryptocurrencies receiving liquidity between ecosystems, potentially leading to increased activity and price rallies for those tokens.
"you can also look at bridged TVL which basically tracks the amount of native liquidity that's being uh bridged between one or two ecosystems whichever crypto is receiving this bridged liquidity could see a spike in activity and the price of its token could rally as a result"
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Declining TVL while token price remains stable or rises is a red flag indicating liquidity leaving a protocol due to reduced trust or capital flight.
"on the flip side if TVL is declining while the token price holds steady or even rises it could be a red flag that liquidity is leaving the protocol and this might point to reduced levels of trust or capital moving to other projects"
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Profitable investors may rotate gains from one cryptocurrency (e.g., BTC) into another (e.g., ETH), indicating potential future price movements.
"these profitable investors will likely rotate these gains elsewhere for example BTC holders would likely rotate into ETH"
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A low stablecoin supply ratio suggests significant liquidity on the sidelines, indicating high buying power that could fuel a crypto rally.
"a low stable coin supply ratio means that there's a lot of stable coin liquidity sitting on the sidelines ready to be deployed into the market and this suggests high buying power for stable coins potentially fueling a crypto rally"
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Lower exchange balances suggest less liquidity, leading to more volatile crypto prices, typically to the upside, as more investors are holding (bullish).
"when exchange balances are lower this means that there's less liquidity on these exchanges which results in crypto prices being more volatile usually this volatility is to the upside since less exchange balances mean that more investors are hodling which implies more investors are bullish"
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High exchange balances are a bearish signal, indicating investors are sending crypto to exchanges, likely for selling.
"when exchange balances are high this is a bearish signal because it indicates that investors are sending crypto to exchanges presumably to sell"
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When a large percentage of holders are in profit, the market may be overvalued, suggesting it could be a good time to sell.
"when nearly everyone's making money it's only a matter of time before they cash in on those gains so if you identify this trend happening then the market could be overvalued and it may be a good time to sell"
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A high NUPL indicates overheating and a potential selling opportunity; a low NUPL suggests the market is warming up and a buying opportunity.
"when the nupal indicator starts to get high then this can often indicate that prices have become overheated and it may be a good idea to sell conversely if null is low then the market is just getting warmed up and it may be a good time to buy"
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Investigating the source of increased active wallets can reveal which projects are driving growth and if their associated tokens are poised for a rally.
"an increase in the active wallets is typically a bullish sign for a crypto project or protocol but what protocol is driving that activity investigating this onchain can reveal whether the token associated with the project fueling that growth is positioned to rally as activity ramps up"
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Crypto receiving bridged liquidity via bridged TVL could experience a spike in activity and a potential token price rally.
"you can also look at bridged TVL which basically tracks the amount of native liquidity that's being uh bridged between one or two ecosystems whichever crypto is receiving this bridged liquidity could see a spike in activity and the price of its token could rally as a result"
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A spike in stablecoin supply could foreshadow a significant announcement, allowing prepared investors to capitalize on onchain clues.
"if the supply of stable coins is spiking then this usually is for a good reason and identifying the cause of this could foreshadow an announcement of some kind an announcement that your portfolio was prepared for because you followed the onchain clues"
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Significant crypto holdings on an exchange could signal an upcoming major move, but ETF holdings need to be considered for accurate context.
"a significant amount of crypto sitting on an exchange could foreshadow a major move however it's important to remember that holdings in ETFs can affect how these balances appear so context is key"
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Identifying cryptos where a high percentage of holders are already in profit can help identify potential investment opportunities before they pump, as profitable investors may rotate gains elsewhere.
"as for the percentage of holders in profit this can be a great way to identify which cryptos you can invest in before it starts to pump and that's because these profitable investors will likely rotate these gains elsewhere"
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