What is this indicator?
Compares the market's current value to the average price at which holders actually acquired their coins. Historically, very high readings have often coincided with market price peaks.
How to read the chart
Sharp changes or a move outside this metric's normal range often coincide with important price turning points, and it's used as a secondary confirmation alongside technical analysis.
Practical tip
On-chain data is best used to complement technical analysis, not replace it; interpreting a single metric in isolation can be misleading.