Buying Pressure Continues to Weaken as Market and On-Chain Activity Slow Simultaneously

TLDR:

• Buying Pressure Continues to Weaken as futures buy volume declines despite price holding higher levels
• Active address slowdown signals reduced OTC activity and weaker overall market participation
• Volume divergence since August mirrors late-stage market behavior seen during the 2021 cycle
• Price movement after the key zone suggests extended distribution rather than renewed accumulation

Buying pressure continues to weaken across crypto markets, according to new analysis combining market structure and on-chain indicators. 

Data from CryptoQuant shows declining participation as prices struggle to attract fresh demand. Analysts observe weakening volume trends alongside slowing network activity, suggesting reduced engagement from both traders and large participants. 

The assessment presents a cautious view of current conditions without projecting near-term outcomes.

Market Structure Signals Persistent Weakness

CryptoQuant contributor Mignolet noted on X that buying pressure continues to weaken in derivatives markets, especially on Binance futures. 

He pointed to a prolonged divergence where prices advanced while buy-side volume steadily declined. This pattern mirrors late-cycle behavior observed during the 2021 market peak.

According to the analysis, such divergence reflects reduced conviction among buyers rather than aggressive selling pressure. Volume contraction during rising prices often indicates distribution rather than accumulation. 

Mignolet emphasized that this structure has remained intact since August, with no sustained recovery in buy volume.

The analyst added that a healthy rebound should have emerged within a defined technical zone. Instead, price behavior followed a familiar late-cycle trajectory. 

From this angle, recent advances resemble a continuation of distribution rather than renewed momentum.

On-Chain Activity Shows Fading Participation

Alongside market data, on-chain metrics reinforce the view that buying pressure continues to weaken across the ecosystem. 

Active address counts have slowed sharply, signaling reduced transactional engagement. Mignolet linked this trend to diminished over-the-counter activity recorded on-chain.

In his post, he explained that active address metrics often track broader participation and liquidity flows. 

A slowdown suggests fewer participants are moving capital or establishing new positions. This decline reflects lower overall vitality rather than isolated market events.

The combined signals point toward a market requiring time to stabilize. Mignolet stated that whether the four-year cycle still applies remains unclear. 

However, he stressed that this question holds limited relevance during the current phase, as recovery conditions have yet to form.