What do token flows between exchanges and wallets indicate?
When people move a lot of tokens from their personal wallets to exchanges, it often means they are getting ready to sell.
This can suggest they expect market changes or want to take advantage of high prices. Such moves can affect market stability, as big sales usually increase market volatility.
On the other hand, when many tokens are moved from exchanges to personal wallets, it might mean people are buying and holding for the long term, showing confidence in future price increases. This behavior suggests that these investors expect the market to improve over time.
By looking at these token flows, we can understand how people feel about the market, whether they are cautious and uncertain or optimistic and confident.
When people move a lot of tokens from their personal wallets to exchanges, it often means they are getting ready to sell.
This can suggest they expect market changes or want to take advantage of high prices. Such moves can affect market stability, as big sales usually increase market volatility.
On the other hand, when many tokens are moved from exchanges to personal wallets, it might mean people are buying and holding for the long term, showing confidence in future price increases. This behavior suggests that these investors expect the market to improve over time.
By looking at these token flows, we can understand how people feel about the market, whether they are cautious and uncertain or optimistic and confident.