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How to Analyze Attention Tops in Crypto Trading Using Onchain Data

How to Analyze Attention Tops in Crypto Trading Using Onchain Data

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Hey there, crypto enthusiasts! If you’ve been scrolling through X lately, you might have stumbled upon a thought-provoking post by Kyle (@0xkyle__), a well-known voice in the crypto community. In his tweet from July 27, 2025, Kyle dives into the challenges of spotting “attention tops” in the crypto market—a term that refers to the peak of hype or interest that often signals a potential price reversal. Let’s break it down and explore what this means for traders like you and me.

Why Attention Tops Matter in Crypto

Kyle admits that gauging these attention tops has become trickier for him, which is throwing off his trading edge. In the fast-moving world of cryptocurrency, attention tops are crucial because they often indicate when the market is overheated. Think of it like a party—when everyone’s talking about a meme token or a new blockchain project, it might be time to step back before the music stops. Kyle’s struggle highlights a shift in how we analyze market sentiment, especially with the rise of onchain data.

Onchain data, by the way, is the raw info recorded on a blockchain—like how much crypto is moving between wallets. It’s different from trading volume on exchanges and gives us a clearer picture of what’s really happening behind the scenes. You can read more about it on cointelegraph.com.

Kyle’s New Strategy: Volume Profile + RSI

To get his edge back, Kyle suggests combining a volume profile with the Relative Strength Index (RSI). Let’s unpack these tools:

  • Volume Profile: This is a fancy way of looking at trading activity over time, showing which price levels have the most volume. It helps identify support and resistance zones—think of it as a map of where the market has been busiest.
  • RSI Indicator: RSI is a momentum oscillator that measures whether a crypto asset is overbought (above 70) or oversold (below 30). It’s a popular tool for timing trades, and you can learn more about it on cointree.com.

By blending these two, Kyle aims to spot onchain tops more accurately. For example, a high volume profile at a certain price, paired with an RSI above 70, could signal it’s time to sell before the market cools off.

The Bigger Picture: Evolving Market Signals

This tweet builds on an earlier post where Kyle pondered whether platforms like Crypto Twitter (CT) are losing their edge as a source of alpha (high-quality trading insights). He suggested that the rise of bots and less-informed voices might be drowning out the signal. Now, he’s pivoting to onchain metrics, which makes sense in a world where narrative-driven hype (like meme tokens) can skew traditional sentiment analysis.

For those of us at meme-insider.com, this is super relevant. Meme tokens thrive on community buzz, but that buzz can lead to attention tops. By using tools like volume profiles and RSI, you can navigate the wild world of meme coins with more confidence.

Takeaways for Blockchain Practitioners

So, what can we learn from Kyle’s insight? Here are a few practical tips:

  • Diversify Your Data Sources: Don’t rely solely on social media sentiment. Dive into onchain data to see the real action.
  • Experiment with Tools: Try setting up a volume profile and RSI on your favorite trading platform. Sites like TradingView offer these features.
  • Stay Adaptive: The crypto market evolves fast. If one strategy (like reading CT) stops working, be ready to pivot, just like Kyle.

Kyle’s honesty about losing his edge is a reminder that even seasoned traders need to adapt. Whether you’re into meme tokens or serious blockchain projects, keeping an eye on onchain tops with these tools could give you the upper hand. What do you think—will this approach work for you? Drop your thoughts in the comments, and let’s keep the conversation going!

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