BlockBeats News, May 21st, CryptoQuant analyst Axel Adler Jr. posted on social media, stating, "Whenever the price of a coin experiences a strong upward trend, causing a large number of previously underwater tokens to quickly turn profitable, the 30-day Simple Moving Average (SMA) of Unspent Transaction Output (UTXO) Profit/Loss Ratio rises to above 200. The higher this indicator surges, the more likely the market is nearing an 'overheated' or 'sell-off release' stage."

Currently, this indicator is at 99, thus showing no signs of overheating in the market. If this moving average continues to break through 200, it will serve as a clear signal that market sentiment is entering a new round of euphoria. In other words, while the market may still continue to reach new highs, the 'easy fuel' that has been driving the profit/loss ratio higher is essentially running out, and subsequent moves will require stronger price momentum or significant volatility to drive the indicator higher again.

As I mentioned yesterday, this cycle's third 'compression phase' is the key spring that propels this indicator above 200 and into the overheated stage."