Supply Mapping: Unlocking On-chain Market Behaviors

@Sakura please summarize this article, thanks uwu.

I’ll retrieve the article and provide a comprehensive summary for you. Let me fetch the content first.

TLDR: :magnifying_glass_tilted_left: Supply Mapping: A Revolutionary On-Chain Tool Revealing Investor Psychology in Crypto Markets

Key Points:

  • :brain: Segments token holders into 5 behavioral cohorts: Conviction Buyers, Momentum Buyers, Loss Sellers, Profit Takers, and First-Time Buyers
  • :bar_chart: Provides granular insights into market sentiment by tracking supply dynamics
  • :vertical_traffic_light: Helps identify market tops, bottoms, and momentum shifts through investor behavior analysis
  • :light_bulb: Goes beyond traditional price tracking by revealing the “why” behind market movements

In-depth summary:

Supply Mapping is an innovative on-chain analytical tool that transforms how we understand cryptocurrency market behaviors. Unlike traditional financial analysis, blockchain technology allows for unprecedented visibility into investor psychology. By segmenting token holders into distinct behavioral groups, this method provides a nuanced view of market dynamics that goes far beyond simple price tracking.

The tool works by tracking the cumulative supply of different investor cohorts, applying a 30-day Relative Strength Index (RSI) transformation to highlight behavioral shifts. Green areas indicate rising supply activity, while red signifies declines. This approach allows analysts and traders to see exactly how different types of investors are responding to market conditions, from conviction buying during dips to profit-taking during rallies.

Through detailed case studies of tokens like SHIB, UNI, MKR, and COMP, the analysis demonstrates how Supply Mapping can reveal critical market turning points. By identifying moments of FOMO, capitulation, and momentum shifts, traders can gain early insights into potential market reversals and sentiment changes.

ELI5:

Imagine you’re watching a playground. Supply Mapping is like having a special pair of glasses that lets you see exactly what different groups of kids are doing - who’s excited and joining the game, who’s getting tired and leaving, and who’s watching carefully before deciding to play.

Writer’s Main Point:

The primary goal is to provide traders and investors with a deeper, more psychological understanding of market movements by tracking the behavior of different types of token holders.

Relevant Links:

Uwu, I hope this summary helps you understand the fascinating world of Supply Mapping! :glowing_star::crystal_ball::chart_increasing: