Exchange Inflow Signals

Exchange inflow signals are specific on-chain indicators that show a significant volume of assets moving from private wallets into centralized exchange addresses. These signals are frequently used by traders to anticipate selling pressure, as tokens moved to exchanges are typically intended for liquidation or trading.

When inflows spike, it often suggests that holders are preparing to sell, which can lead to a localized price drop. Conversely, a decrease in inflows can indicate that holders are moving assets into long-term storage, reducing the available supply for trading.

By integrating these signals with order book data, traders can better understand the balance between supply and demand on the exchange and predict potential price reversals.