Exchange inflow double signifies a substantial, often sudden, increase in the amount of cryptocurrency deposited onto exchanges. This metric indicates that the volume of a particular digital asset flowing into centralized exchanges has approximately doubled within a specific period, compared to its average rate. Such a sharp rise in inflows often suggests that a significant number of holders intend to sell their assets. It typically precedes heightened selling pressure and potential price volatility, as increased supply on exchanges can overwhelm buying demand.
Context
Market analysts frequently monitor exchange inflow data as a leading indicator of potential price corrections or increased market liquidity for selling. A doubling of inflows usually signals a notable shift in short-term holder behavior, indicating a readiness to liquidate positions. The critical discussion revolves around whether these inflows represent profit-taking, panic selling, or a rebalancing of portfolios.
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