> For the complete documentation index, see [llms.txt](https://docs.digitaldon.net/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.digitaldon.net/how-the-analysis-works/onchain.md).

# On-chain sentiment

The chart can look perfect on a token you can't get out of. This section is computed entirely from pair data — no candles involved — and it's the part that answers "is this thing even tradable".

## Liquidity vs market cap

How much is actually in the pool, relative to what the token claims to be worth.

| Liq / MCap | Verdict      |                                                |
| ---------- | ------------ | ---------------------------------------------- |
| ≥ 10%      | very healthy | ✅                                              |
| 5–10%      | healthy      | ✅                                              |
| 2–5%       | low          | ⚠️ *price impact on large trades will be high* |
| < 2%       | **critical** | 🛑 *high rug / manipulation risk*              |

This is the single most useful number on the card for anything small. A $2M market cap with $18K of liquidity means the market cap is a story, not a price you could realise.

## FDV vs market cap

Fully diluted valuation against circulating market cap — i.e. how much supply hasn't hit the market yet.

| FDV / MCap | Verdict                     |                                               |
| ---------- | --------------------------- | --------------------------------------------- |
| < 1.2×     | fully circulating           | ✅                                             |
| 1.2–2×     | moderate unlock risk        | ⚠️                                            |
| 2–5×       | significant unlock overhang | ⚠️ *potential future sell pressure*           |
| ≥ 5×       | **extreme unlock risk**     | ⚠️ *most supply still locked, heavy dilution* |

A 5× FDV ratio means that for every token trading, four are waiting. You're not just betting on demand, you're betting on demand that outruns scheduled supply.

## Volume vs market cap

Also reported, with its own read:

| Vol / MCap | Label                             |
| ---------- | --------------------------------- |
| > 1.0×     | Very high — possible manipulation |
| 0.3–1.0×   | High — strong interest            |
| 0.05–0.3×  | Normal                            |
| < 0.05×    | Low — little activity             |

Note the top band is a *warning*, not a compliment. Daily volume exceeding the entire market cap usually means wash trading or a very small number of very busy bots.

## Buy/sell pressure

The raw 24h split:

```
📊 1,284 buys / 743 sells — 63% buy pressure
```

Crude, but it's real transactions rather than sentiment, and it's one of the signals feeding the [score](/how-the-analysis-works/score.md).

## Fresh-launch cards

A token only a few days old usually has no usable chart history — the pool has barely existed. Rather than returning "no data", the card flips to a pure on-chain read: liquidity ratio, unlock overhang, buy/sell pressure. No score, no zones.

Which is the right call, because at that age the question isn't "where's the entry", it's "is this a rug".

Two details that make this trustworthy rather than convenient:

**Unknown age counts as not-fresh.** If the age can't be determined, the token does *not* get a fresh-launch card. So a data outage degrades to the ordinary "no data" message instead of labelling established tokens as new launches.

**No market cap is not the same as no verdict.** Very new tokens often have no reported market cap, in which case the liquidity thresholds are re-run against FDV and relabelled. Without that, the one card that most needs a liquidity verdict would be the one silently missing it — and what's left reads misleadingly bullish. If neither cap is known, the card states the absolute liquidity figure rather than staying silent about liquidity altogether.


---

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