Long Vs Short Term
Short Term Holder Realized Price

Short Term Holder Realized Price

The "Short Term Holder Realized Price + MVRV" metric integrates two important measures to understand the behavior and perception of short-term investors in the cryptocurrency market.

  • Realized Price of Short Term Holders: This is the average purchase price of cryptocurrencies by these investors, representing the average acquisition cost of the coins currently held by short-term holders.

  • MVRV: The ratio between the market value and the realized value. This indicator compares the current market price with the average purchase price. A high MVRV suggests that the market value is much higher than the average acquisition cost, indicating potential overvaluation. A low MVRV may indicate undervaluation, with the market price close to or below the average acquisition cost.

By combining these two metrics, analysts can gain insights into the sentiment of short-term holders, assessing whether they are potentially in a position of profit or facing an unrealized loss situation.

This metric is extremely useful for evaluating whether short-term investors might be inclined to sell if they perceive the cryptocurrency to be overvalued, or if they might be willing to accumulate more if they believe the currency is undervalued. Essentially, it provides a way to understand the behavior trends of short-term investors and can be a useful indicator for investment decision-making.