On-Chain Data Suggests Now is the Time for Future Investment with a High ROI Ratio

By 0xK2 03/26/23 7:59 AM

In recent news, it has been reported that according to data by CryptoQuant, there has been a shifting point between long-term holders and new buyers. This method of identifying the approximate time in which the new bull market shall start is seen as very useful, especially for a long-term investment with high ROI ratio.

The data shows that when the long-aged stored coins are accumulated for a long time metric, there is a decrease until the intersection point between the (6m-12m and the 12m-18m). This drop can be attributed to two things.

First, these coins are shifted into older age bands, which means they are not sold. Second, these coins are shifted into younger age bands, which means these coins were circulated in the supply, making their lifetime counter start from one day.

When there is a rapid decrease in coins stored in this particular period of time (6m-18m), historically it has shown a good indication of the presence of an undervalued market.

This is a stage where these coins are shifted into younger age bands, which means some people are accumulating future investments, especially when there is a noticeable increase in the young age bands even a few months before the new bull market starts.

As for now, we are at the undervalued stage, and it is a good time for future investment with a good ROI ratio. This shift in long-term holders and new buyers indicates that there may be a change in the market, and investors should take notice of this data to make informed decisions about their investments.

Overall, the data by CryptoQuant highlights the importance of monitoring the market and staying up to date with the latest trends and shifts. The shifting point between long-term holders and new buyers is just one example of how data can be used to make informed investment decisions, and it is a useful tool for those looking to invest in the cryptocurrency market.

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