Realized Price Bands

Definition ∞ Realized Price Bands are on-chain analysis tools that delineate historical price ranges based on the average cost at which different cohorts of investors acquired their digital assets. These bands help identify significant support and resistance levels, as they represent the aggregate cost basis for various groups of holders. When the market price enters a specific band, it can indicate areas where investors might be more inclined to sell to break even or take profits. They offer insight into market psychology.
Context ∞ Realized price bands are regularly used in crypto market analysis to interpret investor behavior and predict potential price movements. News reports often reference these bands when discussing market bottoms, tops, or consolidation phases, providing a data-driven perspective on investor sentiment. These tools assist in understanding where significant portions of the supply were last transacted.