Realized Price Distribution

Definition ∞ Realized price distribution is an on-chain metric that illustrates the price at which each unit of a digital asset last moved on the blockchain. It provides insight into the cost basis of the circulating supply held by various market participants. This distribution helps identify significant price levels where large volumes of assets were acquired. Analyzing this metric can indicate potential support or resistance levels based on investor profitability.
Context ∞ Crypto analysts frequently reference realized price distribution in news reports to assess the aggregate profit or loss positions of asset holders. It serves as a tool for understanding market psychology and potential selling pressure. Observing shifts in this distribution can provide indications of long-term holder behavior and market cycles.