Exactly! Some traders are skilled at using this method and it's been profitable for them. Recently, I even found Bitget introduced Smart Money Leaderboard event for their users to Spot a trending token on their exchange Onchain section, copy its CA, use onchain analytics to identify top traders and Submit their wallet addresses on the event page for reward. I feel it could be their way of popularizing this method of analysis because it works. The caution should be knowing when to buy (if you have to) and when to sell.
It's not as simple as it sounds, because even though this method is starting to be introduced, there are risks for beginners and anyone who enters or exits late. I've read about this, and Bitget and several local exchanges in my country are introducing Smart Money Leaderboard events for anyone to spot token trends. However, it's not without risks if one lacks analytical skills. The most important part here is being able to spot the moment to buy and sell, because if one is late, this method can actually cause someone to lose more money. Especially when talking about tokens that lack fundamentals, which are usually influenced only by hype, and they will be very risky in the long run.