Definition ∞ Short-term holder support refers to a price level at which recently acquired digital assets, typically held for less than 155 days, begin to find buying interest, preventing further price declines. This metric indicates the average cost basis for investors who have entered the market more recently. When the price approaches this level, it suggests that these newer market participants are defending their positions. It can act as a temporary floor for market corrections.
Context ∞ Short-term holder support is a key on-chain metric used in cryptocurrency market analysis to gauge the resilience of recent market entrants during price corrections. News reports often track this metric to identify potential areas where selling pressure might ease and a rebound could occur. A key debate centers on the strength and durability of this support compared to that provided by long-term holders, as short-term holders are often more sensitive to market volatility.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
