This article introduces the Net CEX Outflow and how to capture bullish and bearish signals via this metric.
The Net CEX Outflow equals the outflow number of a particular token from centralized exchanges (CEXs) minus the inflow amount in a given time.
- CEX Inflow: traders deposit/transfer tokens to CEX.
- CEX Outflow: traders withdraw tokens from CEX.
For example, suppose we detect 2,000 examplecoins withdrawals and 1,000 deposits from centralized exchanges within 24 hours. The Net CEX Outflow will be 1,000 (2,000-1,000=1,000).
How can I use it?
The Net CEX Outflow is a new and exclusive token indicator developed by Candlestick. This indicator calculates live deposits and withdrawals from 27 major centralized exchanges(CEX), indicating real-time token flow changes.
Tutorial for Beginners
This tutorial provides metric explanation and step-by-step manuals: Metric Handbook: Net CEX Outflow.
Identify bullish and bearish signals
According to monitoring the exchange inflow/outflow of tokens, traders can check deposits/withdrawals and see how it correlates with the price.
|Net CEX Outflow||>0||Bullish|
A positive number indicates that traders deposit fewer tokens to centralized exchanges than withdrawals. After withdrawing, traders will probably turn to holding, staking, or farming.
|Net CEX Outflow||<0||Bearish|
A negative number indicates that traders deposit more tokens to centralized exchanges than withdrawals. Increasing cryptos entering CEXs will be likely to cause selling pressure.
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