On-Chain Warning Signals

Definition ∞ On-chain warning signals are specific data points or patterns observed directly on a blockchain that indicate potential market weakness, impending price corrections, or network vulnerabilities. These signals can include unusual transaction volumes, changes in miner behavior, increased exchange inflows, or shifts in long-term holder spending. They provide direct insights into the underlying activity and sentiment of network participants. These metrics offer a transparent view of market dynamics.
Context ∞ Crypto news often references on-chain warning signals to provide a deeper analytical perspective on market conditions beyond simple price charts. Reports might highlight indicators like declining network activity or increasing supply on exchanges as precursors to price drops. The analysis of these signals helps investors and analysts anticipate market shifts and assess overall network health.