Supply Last Active 3m-6m

Supply Last Active 3m-6m Indicator

The Supply Last Active 3m-6m indicator measures the amount or percentage of acirculating supply that has been inactive (not moved or transacted) for between three and six months. This metric provides insights into mid-term holder behavior, market confidence, and supply dynamics.

Steps to Use the Supply Last Active 3m-6m Indicator

1. Understand the Concept:

• Mid-Term Inactive Supply: Represents the portion of the circulating supply that has not been active for three to six months.

• Relevance: Reflects trends in mid-term holding behavior, offering insights into market confidence and the potential for upcoming activity.

2. Interpret the Supply Last Active 3m-6m Indicator:

• High Percentage: Indicates strong mid-term holding behavior, suggesting participants are retaining assets rather than trading.

• Low Percentage: Suggests increased activity in this timeframe, often correlating with higher market engagement or redistribution.

• Trends Over Time: Analyze changes to understand the balance between mid-term holding and active market participation.

3. Analyze Historical Patterns:

• Bull Markets: Mid-term holders may reduce their holdings, leading to a decrease in the 3m-6m supply as profits are realized.

• Bear Markets: This metric often increases as holders wait for improved market conditions before transacting.

• Market Cycles: Shifts in this metric can align with key phases of accumulation, distribution, or market consolidation.

4. Make Decisions:

• During High Percentages: Evaluate the potential for reduced selling pressure and a stable market environment.

• During Low Percentages: Monitor for signs of heightened market activity or redistribution by mid-term holders.

• Validate Market Trends: Use this metric in combination with other indicators to confirm market sentiment and activity levels.

Tips:

• Combine with Other Holder Metrics: Pair this indicator with metrics like short-term and long-term holder supply for a holistic analysis.

• Monitor Historical Patterns: Pay attention to increases or decreases during similar market phases to identify trends.

• Use Historical Comparisons: Compare current levels with past data to assess market confidence and potential turning points.

• Contextualize with Market Events: Consider external factors such as economic trends or major announcements influencing activity.

How to Use the Indicator Effectively

• Gauge Mid-Term Confidence: Use high levels of 3m-6m inactivity to evaluate mid-term holder behavior and market sentiment.

• Identify Market Phases: Monitor changes in this metric to detect accumulation, distribution, or stabilization phases.

• Support Investment Strategies: Incorporate insights from this indicator into mid-term portfolio management and risk assessments.

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