*7 underrated signs of a bear market to watch out for 🚨*
Bear markets do not begin with a bang, but with hesitation. Before prices drop, capital slows down, activity weakens, and liquidity disappears without a trace. If you know what to track, you will see the pullback happen in real-time long before the event becomes obvious.
*The seven signs to watch for:*
1️⃣ *The supply of stablecoins increases while on-chain activity decreases*:
- When the supply of stablecoins rises, but the rest of the network calms down, it is a sign that users are retreating and not preparing.
2️⃣ *DEX incentives rise, but volume does not increase*:
- When protocols increase rewards to keep traders around, but volume remains flat or decreases, it is a sign that users are not biting.
3️⃣ *Rising volatility without liquidity support*:
- When volatility rises without liquidity support, it is a sign that the market is unstable.
4️⃣ *Fragmentation of token pairs across chains*:
- When token pairs fragment across chains, it is a sign that the market is losing cohesion.
5️⃣ *Smart money withdrawing from liquidity providers and lending protocols*:
- When smart investors pull their money from liquidity providers and lending protocols, it is a sign that they expect a market decline.
6️⃣ *New launch within 48 hours*:
- When new products are launched within 48 hours, it is a sign that the market expects significant changes.
7️⃣ *Bridge flows into stables or rising central chains*:
- When money flows into stables or central chains rise, it is a sign that investors are seeking a safe haven.
These seven signs can help you anticipate a market decline and avoid losses. Are you ready to face the challenges? 🚀
