Realized Price Levels

Definition ∞ Realized price levels represent the average acquisition cost of all coins on a blockchain, calculated by summing the price at which each coin last moved on-chain and dividing by the total number of coins. This metric provides an aggregated view of the market’s overall cost basis. It helps identify significant support and resistance zones based on the historical cost of coins held by various investor cohorts. These levels reflect the aggregate cost for the network.
Context ∞ In cryptocurrency news, realized price levels are frequently used as a sophisticated on-chain indicator to assess market sentiment and potential price floors. When the market price falls below a realized price level, it suggests that a significant portion of the supply is held at a loss, often signaling capitulation. Conversely, a price trading above realized levels indicates aggregate profitability, potentially attracting further investment.