Supply Last Active 6m-12m
Tutorial: Supply Last Active 6m-12m Indicator
The Supply Last Active 6m-12m indicator measures the amount or percentage of a cryptocurrency’s circulating supply that has been inactive (not moved or transacted) for between six months and one year. This metric provides insights into mid-term holder behavior, market dynamics, and supply trends.
Steps to Use the Supply Last Active 6m-12m Indicator
1. Understand the Concept:
Mid-Term Dormant Supply: Represents the portion of the circulating supply that has not been active for six to twelve months.
Relevance: Highlights trends in mid-term holding behavior, offering insights into market confidence and the potential for upcoming activity.
2. Interpret the Supply Last Active 6m-12m 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 6m-12m 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 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 6m-12m 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.
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