To be honest, the recent market fluctuations have caught many people off guard. Many retail investors rely solely on news—when someone says a certain coin will rise, they rush in immediately, often ending up buying at a high point. But here’s the question: why are some people able to avoid these traps and instead find opportunities amid the volatility?

The key is that they don’t pay attention to market noise, but instead focus on on-chain data. Data itself doesn’t lie.

When I judge short-term trends, I mainly monitor three core indicators:

**The first is exchange net outflow/net inflow.** When mainstream coins are continuously net outflowing from exchanges, it usually indicates that major players are quietly accumulating, and the probability of subsequent price increases is higher. Conversely, if there’s a large inflow, caution is advised.

**The second is active addresses.** This data reflects genuine participation. If the number of active addresses keeps increasing, it indicates growing attention to the project and a warming market sentiment.

**The third is large transfer data.** When multiple large transfers move from wallets to exchanges, it’s time to be alert—this often signals that major players are preparing to sell off.

Looking at the recent market, some mainstream coins have been net outflowing for several days. What does this mean? It indicates that those who truly understand are positioning themselves. Meanwhile, retail investors who only listen to stories are still debating whether to cut losses. The difference lies here—one looks at data, the other listens to stories.