Definition ∞ Active Realized Price indicates the average cost at which recently moved cryptocurrency units were acquired. This metric functions as a dynamic cost basis for market participants actively transacting or holding digital assets. It considers only those coins that have changed addresses within a specific recent timeframe, separating them from long-term dormant holdings. This provides a more current perspective on the acquisition costs for engaged market participants.
Context ∞ Analysis frequently compares the Active Realized Price with the current market price, revealing whether active participants hold unrealized profits or losses. A significant difference between these values often signals shifts in market sentiment or potential selling pressure from recent purchasers. Monitoring its trajectory offers valuable insight into the short-to-medium term financial standing of currently engaged market participants.
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