@zombie3
On-chain data provides insights into blockchain activity, such as transaction volumes, wallet balances, and token movements. Analyzing these metrics can reveal trends like whale movements, increased network usage, or large holders shifting positions. For example, if a significant number of tokens move from exchanges to private wallets, it might signal that holders are preparing for long-term storage, potentially reducing sell pressure. Conversely, large amounts of crypto being deposited onto exchanges could indicate selling pressure. By monitoring on-chain metrics alongside technical analysis, traders can gain valuable insights into market sentiment and future price movements.
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