@kerrdolly
During uptrends, early-warning indicators for corrections include declining trading volume despite rising prices, signaling weakening momentum. Another sign is when price acceleration outpaces volume growth, often reflecting unsustainable buying pressure. On-chain activity, such as declining active addresses or shrinking transaction counts, also signals reduced organic demand. Funding rates in derivatives turning excessively positive highlight crowded longs vulnerable to liquidation. Monitoring these metrics together provides a composite risk signal, allowing traders to anticipate reversals before sharp pullbacks occur. Early vigilance ensures better capital preservation amid volatile bull cycles.
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