Realized Price Cluster

Definition ∞ A realized price cluster denotes a concentration of on-chain activity where a significant volume of a cryptocurrency was last moved, indicating the average acquisition cost for a substantial portion of the supply. This metric helps identify price levels where many investors acquired their assets, suggesting strong psychological support or resistance. These clusters often act as important market junctures. They reveal where a large segment of the market holds its position.
Context ∞ Realized price clusters are key on-chain analysis tools used by market analysts to identify potential support or resistance levels for digital assets. News reports frequently reference these clusters to explain why a particular price point might attract renewed buying interest or increased selling pressure. A key debate revolves around the predictive power of these clusters, as their influence can diminish during extreme market conditions or rapid shifts in investor sentiment.