On-chain analysis and Veles trading bots

Veles trading bots are your 24/7 crypto trading assistant. They monitor charts, react to signals and execute trades faster than you can finish your coffee. But their default settings rely on technical indicators like RSI or moving averages. What if you add data from the heart of the blockchain? Onchain analysis reveals hidden market signals that can make your strategies even more profitable. Let's take a look at how to use onchain data to improve your trading strategies, what metrics to track, and how it can help you trade intelligently.

Your key to the market

Blockchain is the public ledger of the cryptocurrency world, where all transactions, wallets and asset movements are recorded. If technical analysis shows how price moves, onchain analysis explains why it happens. It identifies the footprints of major players, accumulation zones and signals of future movements.

For Veles users, onchain analysis is a way to add context to automated strategies. It doesn't replace bots, but helps you pick the perfect moment to trigger or pause them. An analogy can be made: “The Veles bot is your hammer, and the onchain data is the blueprint for a precise strike.”

Top 5 onchain metrics to optimize Veles bots

Veles bots do a great job with charts, but the market isn't just about candlesticks. Here are five onchain metrics that can help you tune your bots more accurately and earn more.

• Movement of big players
  Track the big transactions on the blockchain - they often set the direction of the market.
  • Coins flowing onto exchanges? That could signal a sale.
  • Assets accumulating in wallets? Growth is likely.
    
    Use platforms like Glassnode or CryptoQuant to check for these signals before running a bot on Veles.
    
    
• Risk zones on futures
  Analyzing positions in the futures markets shows where potential liquidations are piling up.
  • A lot of long positions at risk? Expect a drop.
  • Shorts on the verge? An upward spurt is possible.
    
    Before launching the bot, check liquidation data (e.g. on Coinglass) and configure the bot to avoid high-risk areas.
    
    
• Activity of large investors
  Tracking the wallets of large holders and new projects shows where capital is moving.
  • Are large investors buying up an asset? That's a potential signal for entry.
  • Is a new token attracting attention? A likely opportunity for an early position.
    
    Use this data to select the right pairs to trade.
    
    
• Market Sentiment: SOPR
  Spent Output Profit Ratio (SOPR) shows whether holders are selling in plus or minus.
  • SOPR > 1? Profit taking - the market may be cooling off.
  • SOPR < 1? Loss selling - a rebound is likely.
    
    Try to take this data into account when running the bot.
    
    
• Valuation: MVRV
  Market Value to Realized Value (MVRV) compares the market price to the “real” value of coins.
  • MVRV < 1? The asset is undervalued - a great time to buy.
  • MVRV > 3.5? Overheated - prepare for a correction.
    
    Watch MVRV to adjust entry and exit conditions to trade in high potential areas.

The pitfalls of onchain data

Onchain analytics is powerful, but not perfect. A large transaction may be an internal transfer rather than a signal. Data sometimes lags, and “whales” can create false traces. To minimize risk, combine onchain metrics with indicators such as RSI or Bollinger Bands. This will create a balanced strategy that is resistant to market pitfalls.

Step-by-step plan

• Collect data: look at services like Glassnode, Nansen or Dune Analytics to analyze transactions, SOPR or MVRV.
• Look for signals: look for areas of undervaluation, coin accumulation or liquidation risks.
• Customize the Veles bot:
  • For example, trigger the bot to buy if MVRV < 1 and coins are leaving exchanges.
  • Take a pause when SOPR > 1 or a massive influx of coins into exchanges.
  • Use the bot's start conditions for fine-tuning.
• Test your strategy: run your bot on a backtest to check its effectiveness. Analyze the results and adjust settings.
• Automate the routine: after successful tests, let the bot run on its own, but try to check the onchain data to adjust the strategy.

Example: you notice that coins are accumulating in wallets and MVRV is signaling undervaluation. You set up the Veles bot to buy when resistance levels are broken (based on moving averages, for example) and find yourself in profit while others are waiting for chart signals.

Why onchain analytics + Veles = success?

Onchain data is not just numbers, but a living history of the market. It shows where liquidity is accumulating, who is moving prices, and what to expect next. When combined with bots, onchain analysis turns automation into a strategic weapon: you don't just follow trends, you anticipate them. The Veles platform gives you the flexibility to customize bots for any conditions, and onchain data gives you insights to make accurate decisions.

Take your trading to the next level

Veles bots are a robust automation tool, and onchain analytics is your way to make them smarter. Track the movements of major players, market sentiment, and risk zones to make your bots not only fast, but efficient. Start simple: learn one or two metrics, backtest them, and gradually build a strategy that outperforms the market. With onchain data and Veles, you're not just trading - you're managing the market.