What Is Order Flow?

Order flow analysis studies the real-time stream of buy and sell orders entering the market. In crypto, order flow on centralized exchanges shows the balance between buyers and sellers at each price level. Whale orders significantly impact order flow — a single whale market order can consume multiple price levels of liquidity. On-chain order flow (tracked by Sonar) complements exchange order books by showing when whales are moving capital to exchanges to sell, or withdrawing to accumulate. This combination provides a comprehensive view of market pressure.