1. What Is On-Chain Analysis?
On-chain analysis examines actual transaction data recorded on a blockchain to understand market trends. Unlike chart-focused technical analysis, it follows real asset flows.
2. Key On-Chain Indicators
Exchange Inflows and Outflows
Increasing exchange inflows = Preparation to sell, interpreted as bearish
Increasing exchange outflows = An intention to hold long term, interpreted as bullish
Tracking Whale Wallets
Track wallets holding more than 1,000 BTC. Whale accumulation is interpreted as bullish, while distribution is interpreted as bearish.
NUPL: Net Unrealized Profit and Loss
📊 Interpreting NUPL
NUPL above 0.75: Extreme greed; the guide treats this as a selling period
NUPL 0.5–0.75: Optimism; caution
NUPL 0–0.25: Hope or fear; a potential buying opportunity
NUPL below 0: Capitulation; described as an exceptional buying opportunity
MVRV Ratio
The ratio of market value to realized value. MVRV above 3.5 is interpreted as overheating, and MVRV below 1 as undervaluation.
3. On-Chain Analysis Tools
- Glassnode — Described here as the most comprehensive on-chain dataset
- CryptoQuant — An on-chain platform founded by Koreans
- Nansen — Specializes in tracking smart money
- Arkham Intelligence — Tracks wallet identities
4. AI and On-Chain Data
NOONOO TRADING analyzes market structure alongside price data. Combining insights from on-chain data with automated AI trading can support better-informed investment decisions.
🃏 Data-Based AI Trading
See AI that trades on data, following the same data-oriented principle as on-chain analysis.
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