Definition ∞ A supply rotation signal is an on-chain indicator that suggests a shift in the ownership of a digital asset from one group of holders to another. This often involves coins moving from long-term holders to newer, shorter-term investors, or vice versa. Such signals can indicate changes in market sentiment, potential profit-taking, or accumulation phases. Analyzing these rotations helps assess the strength of current market trends.
Context ∞ Crypto news frequently references supply rotation signals to interpret market cycles and predict future price movements. Reports might highlight a rotation from “old hands” to “new hands” as a sign of potential market tops, or a rotation from short-term speculators to long-term holders as a bullish indicator. These on-chain metrics provide valuable context for understanding the underlying dynamics of cryptocurrency markets.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
