Definition ∞ An on-chain buy signal is an indicator derived from data recorded directly on a blockchain that suggests an increase in purchasing pressure or accumulation of a digital asset. These signals often include metrics such as rising transaction counts, increased unique active addresses, large whale wallet accumulation, or significant outflows from exchanges to self-custody. Such data provides objective evidence of market participant behavior. It offers insights into underlying demand beyond price charts.
Context ∞ Crypto news frequently analyzes on-chain buy signals to forecast potential price movements and assess market strength. When these signals are robust, they can indicate a healthy demand for an asset, suggesting a potential upward price trajectory. Conversely, a lack of such signals during price rallies might suggest unsustainable growth. These metrics are a key tool for data-driven market analysis.
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