Realized Price Support

Definition ∞ Realized price support is a specific price level derived from on-chain data, representing the average cost at which all units of a digital asset were last moved on the blockchain. This metric acts as a strong psychological and economic support level for the asset’s price. When the market price approaches this level, it often indicates a potential area for price stabilization or rebound. It signifies the aggregate cost basis of the market.
Context ∞ Realized price support is a powerful on-chain metric frequently cited in crypto news and analysis to identify significant market floors. Discussions often compare the current market price to this realized price to gauge investor sentiment and potential capitulation events. A critical future development involves integrating more sophisticated on-chain cost basis models into market predictions.