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Inflow Trading

High exchange inflow indicates significant crypto movement to exchanges but does not confirm selling pressure without additional context. Selling pressure can be identified by increased spot exchange reserves, rising futures open interest, and price drops, while transfers may be indicated by stable reserves, no price impact, and wallet activity. To confirm selling pressure, one should check exchange reserves, funding rates, and order book depth for large limit sell orders.

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6 views2 pages

Inflow Trading

High exchange inflow indicates significant crypto movement to exchanges but does not confirm selling pressure without additional context. Selling pressure can be identified by increased spot exchange reserves, rising futures open interest, and price drops, while transfers may be indicated by stable reserves, no price impact, and wallet activity. To confirm selling pressure, one should check exchange reserves, funding rates, and order book depth for large limit sell orders.

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m62819111
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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A high exchange inflow means that a significant amount of crypto is being

sent to exchanges, but it doesn’t necessarily confirm selling pressure unless


combined with other factors. Here’s how you can differentiate:

1. If it’s selling pressure:

Increase in spot exchange reserves → Indicates potential sell-offs.

Rising open interest in futures with high inflows → Suggests traders preparing
to short.

Price reaction → If price drops alongside high inflow, it’s likely selling.

2. If it’s just a transfer (not selling):

Stable or decreasing exchange reserves → Could mean transfers for other


purposes (staking, collateral, arbitrage).

No major price Impact → Large inflows but price remains steady.


Wallet activity → If funds move between known institutional wallets, it may
not be selling.

To confirm, check exchange reserves, funding rates, and order book depth. If
large limit sell orders appear, it signals potential selling pressure.

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