What is this indicator?
Shows whether coins moved on the network were, on average, sold at a profit or a loss. It crossing above the level of one is often read as the psychological line between a bull market and a corrective one.
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.