On-chain analysis involves several metrics that can be daunting for someone new to cryptocurrencies. So don’t get freaked out about the word. 🤔
Analysts often interpret inflows as bearish because crypto going to an exchange is usually sold.
Outflows, on the other hand, are often interpreted as bullish. Outflows mean crypto is leaving the exchange.
And net flows are just the difference between inflows and outflows – more crypto leaving (outflow) an exchange than entering (inflow)? That’s a negative net flow number.
For $MATIC, there’s been an increase in inflows to exchanges.
While there were some major outflows for MATIC from January 23 to January 25, the inflows have been greater than outflows since January 26.
However, the graph shows that the most recent activity shows that the inflows have decreased.
Does this tell us a top is in for Polygon? No – but analysts warn it does show that some profit-taking is probably occurring.
We’ll keep an eye on MATIC and update you if there are any major changes. 🕵