Low supply overhead indicates a market condition where a limited amount of a cryptocurrency is readily available for sale on exchanges. This metric reflects a reduced immediate selling pressure, as fewer assets are held by short-term traders or those intending to liquidate quickly. A low supply overhead often suggests that a significant portion of the asset’s circulating supply is held in long-term storage or illiquid wallets. This scarcity on exchanges can contribute to price stability or upward price momentum, especially when demand is consistent.
Context
Market analysts frequently discuss low supply overhead as a potentially bullish indicator for digital assets. News articles may cite this condition to explain sustained price increases or resilience during market downturns. This factor is closely monitored by investors seeking to understand the underlying supply-demand dynamics of various cryptocurrencies.
Experienced investors have dramatically reduced selling activity while adding hundreds of thousands of coins, signaling deep conviction in future price appreciation.
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