When active wallets start exiting positions, that's typically bullish—it signals weak hands are leaving. Meanwhile, shrinking exchange reserves add another layer of confidence to the uptrend. The less supply sitting on trading platforms, the harder it becomes for large sellers to dump without moving the needle.

Keep monitoring these metrics closely. Track whether this pattern holds across your watchlist. Different coins can tell different stories through their on-chain activity, so don't rely on just one data point. Run the same checks on your alt positions to validate whether the broader sentiment matches what the chain is telling you.