Chain analysis can only help us get a good grasp at how supply moves; but it doesn't give us a clear picture of the potential demand — which is what actually mostly matters when talking about markets. Can't really have accurate expectations with supply alone.
Chain analysis is only part of the guide for us to carry out the analysis and even this becomes a source of reinforcement in decision making, but as you mentioned, it does not make a clear picture of demand, which I think is of particular concern regarding market developments and volatility, due to market reactions really determines how a particular coin can move quickly to the fore