Supply Last Active 1m-3m

Supply Last Active 1m-3m Indicator

The Supply Last Active 1m-3m indicator measures the amount or percentage of circulating supply that has been active (moved or transacted) within the past one to three months. This metric provides insights into medium-term holder behavior, market activity, and participant engagement.

Steps to Use the Supply Last Active 1m-3m Indicator

1. Understand the Concept:

• Medium-Term Active Supply: Represents the portion of the circulating supply that was active between one and three months ago.

• Relevance: Reflects trends in medium-term holder behavior and market dynamics, bridging short-term and long-term activities.

2. Interpret the Supply Last Active 1m-3m Indicator:

• High Percentage: Indicates significant medium-term activity, suggesting active market participation or redistribution.

• Low Percentage: Suggests reduced medium-term activity, often correlating with holding behavior or reduced volatility.

• Trends Over Time: Analyze changes in activity levels to understand shifts in market sentiment and engagement.

3. Analyze Historical Patterns:

• Bull Markets: Medium-term activity often increases during uptrends as participants adjust positions to capture gains.

• Bear Markets: Lower activity levels are common as participants disengage or adopt a holding strategy.

• Market Transitions: Changes in medium-term activity can signal shifts between accumulation and distribution phases.

4. Make Decisions:

• During High Activity Periods: Monitor for potential price movements driven by increased medium-term participation.

• During Low Activity Periods: Evaluate the market for stabilization or reduced volatility trends.

• Validate Market Dynamics: Use medium-term activity data to confirm broader market sentiment and transitions.

Tips:

• Combine with Long-Term and Short-Term Metrics: Use alongside other activity indicators to gain a comprehensive view of holder behavior.

• Monitor Trends: Pay attention to sustained increases or decreases in activity to identify potential market cycles.

• Use Historical Comparisons: Compare current medium-term activity levels with historical data to identify patterns and anomalies.

• Account for External Factors: Consider macroeconomic conditions or significant events influencing medium-term activity.

How to Use the Indicator Effectively

• Gauge Participant Engagement: Use high activity levels to assess the involvement of medium-term holders in the market.

• Identify Market Cycles: Monitor changes in medium-term activity to detect accumulation, distribution, or stabilization phases.

• Support Investment Strategies: Incorporate insights from this metric into medium-term portfolio adjustments and risk assessments.

Created By: This indicator is a widely recognized tool in blockchain analytics.