> For the complete documentation index, see [llms.txt](https://docs.blockhorizon.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.blockhorizon.io/chart-tutorials/price-and-valuation/realized-price-lts.md).

# Realized price LTS

## **Realized Price (LTS) Indicator**

The Realized Price (LTS – Long-Term Supply) is a key on-chain valuation metric that measures the average acquisition cost of coins held by long-term holders. Unlike market price, which fluctuates based on current trading activity, realized price assigns a value to each coin based on the last time it moved on-chain. By focusing on the long-term supply, this indicator highlights investor conviction, market stability, and potential turning points driven by seasoned participants.<br>

## Steps to Use the Realized Price (LTS) Metric

1\. Understand the Concept:

* Realized Price (LTS): The total realized cap of long-term holder coins divided by the total long-term holder supply. It represents the average cost basis of investors holding for the long term (often defined as coins unmoved for 155+ days).
* Relevance: Serves as a baseline for long-term investor sentiment and conviction, providing insights into whether the market is trading above or below their average entry price.<br>

2\. Interpret the Realized Price (LTS) Metric:

* Market Price Above LTS Realized Price: Indicates long-term holders are in profit, often signaling bullish momentum and network strength.
* Market Price Below LTS Realized Price: Suggests long-term holders are, on average, underwater — historically associated with bear market lows or capitulation phases.
* Flat or Rising LTS Realized Price: Reflects renewed accumulation and increasing confidence among long-term investors.

3\. Analyze Historical Patterns:

* Bear Market Bottoms: Market price dipping below LTS realized price has often aligned with macro bottoms, where long-term holders endure losses.
* Bull Market Phases: Sustained periods of market price staying above LTS realized price signal healthy uptrends and long-term conviction.
* Capitulation & Recovery: Sharp declines below LTS realized price, followed by recoveries above it, often mark major turning points in market cycles.

4\. Make Decisions:

* During Bull Markets: Price significantly above LTS realized price can confirm strong investor confidence, but also caution for potential overheated conditions.
* At Market Lows: When price falls below LTS realized price, it may present accumulation opportunities, historically preceding strong recoveries.
* During Transition Phases: Crossovers between market price and LTS realized price often indicate upcoming volatility and shifts in market structure.

## Tips:

* Combine with Other Metrics: Use alongside MVRV, SOPR, or long/short-term supply ratios for a deeper understanding of investor behavior.
* Track Crossovers: Pay special attention when market price crosses above or below LTS realized price — these points often mark inflection zones.
* Watch Long-Term Trends: A steadily rising LTS realized price generally reflects strong, consistent accumulation by long-term holders.
* Context Matters: The signal strength can vary across cycles and should be interpreted within broader macroeconomic and market conditions.

## Created By: The Realized Price (LTS) indicator is a widely respected valuation tool in blockchain and on-chain analytics.


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