To make informed decisions in the crypto market, you need to understand on-chain data—these data points are like the true heartbeat of the market. Pay special attention to addresses holding large amounts of assets; traders often call them "whales." The actions of these big players can often predict the upcoming price movements.

What exactly is a whale? The criteria are quite simple. For Bitcoin, it usually refers to addresses holding more than 1000 BTC; for other tokens, it depends on whether the holdings exceed 10 million USD or if they constitute a significant portion of the circulating supply. How do these whales influence the market? The core factor is supply and demand—when whales transfer coins from exchanges to cold wallets (commonly called "accumulation"), the circulating supply decreases, reducing selling pressure and potentially causing prices to rise. Conversely, if large holders start dumping coins onto exchanges, it’s often a sign they’re preparing to sell, which usually leads to a price decline. To catch these signals, focus on tracking large transfers, especially the flow of funds between whales and exchanges.

Here's a real example to illustrate. In June 2025, Polygon (MATIC) experienced a textbook-like rally. The price dropped to a low of $0.317, then rebounded to $0.50 within just four days, an increase of nearly 60%. Behind this move? On-chain whales were actively accumulating, reducing market circulation and paving the way for this surge.