Realized price STS
Realized Price (STS) Indicator
The Realized Price (STS – Short-Term Supply) is an on-chain valuation metric that calculates the average acquisition cost of coins held by short-term holders. Unlike long-term holders, short-term supply typically includes coins moved within the last 155 days. This metric reflects the behavior of newer or more reactive market participants and provides valuable insights into short-term sentiment, potential support and resistance levels, and market momentum.
Steps to Use the Realized Price (STS) Metric
1. Understand the Concept:
Realized Price (STS): The total realized cap of coins held by short-term holders divided by the total short-term holder supply. It represents the average cost basis of investors who have entered the market relatively recently.
Relevance: Helps track the profitability and behavior of newer market participants, who often drive short-term volatility and momentum.
2. Interpret the Realized Price (STS) Metric:
Market Price Above STS Realized Price: Indicates short-term holders are in profit, often leading to increased selling pressure or trend continuation.
Market Price Below STS Realized Price: Suggests short-term holders are at a loss, commonly associated with capitulation, fear, or reduced sell-side pressure.
Rising STS Realized Price: Reflects recent buying at higher prices, often during bullish phases.
Declining STS Realized Price: Implies newer market participants are accumulating at lower levels, typically during corrections or bear phases.
3. Analyze Historical Patterns:
Support & Resistance Levels: The STS realized price frequently acts as a dynamic support or resistance level for market price.
Capitulation Zones: Extended periods where price remains below STS realized price often indicate market stress and potential local bottoms.
Momentum Shifts: Crossovers between market price and STS realized price can signal changes in short-term sentiment and trend direction.
4. Make Decisions:
During Bull Markets: When market price is comfortably above STS realized price, short-term holders are profitable, suggesting trend strength.
At Local Bottoms: Market price dipping below STS realized price may highlight capitulation zones and potential re-accumulation opportunities.
During Uncertain Phases: Watch closely for crossovers, as they often precede short-term volatility or momentum shifts.
Tips:
Pair with LTS Realized Price: Comparing STS and LTS realized prices provides a clearer picture of short- vs long-term holder dynamics.
Watch Short-Term Volatility: STS holders tend to react more quickly to price changes, making this metric a strong leading indicator of momentum shifts.
Identify Risk Zones: Rapid rises in STS realized price during late-stage bull markets may signal overheated conditions.
Context is Key: Interpret within the broader cycle — STS is more sensitive to short-term shifts, while LTS provides structural context.
Regular Monitoring: Use analytics platforms to track STS realized price in real time, as it often changes faster than LTS metrics
Created By: The Realized Price (STS) indicator is a widely recognized tool in blockchain analytics.
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