Understanding Seller Exhaustion

Glassnode Insights, a crypto market analytics company, has developed a framework to assess seller exhaustion over multiple timeframes. The framework, based on Glassnode’s Breakdown Metrics allows for the isolation of specific points of unrealized losses and investor capitulation.

Long-term investors tend to be highly profitable during a bull market. The short-term holders are the main source of losses realized. They can also provide valuable information about inflection points when there is a sell-off.

The new framework is able to identify seller exhaustion in day traders and weekly-monthly investors. It uses both unrealized losses and realized losses to gauge the response of targeted investor classes to market downturns.

Setting up a framework for seller exhaustion

The framework was designed to identify the inflection point during corrections or consolidations that occur within a bullish trend. Seller Exhaustion can be defined as an oversold condition where the majority of sellers are likely to sell. This can be used to establish a local bottom.

The framework utilizes three metrics to determine the level of pressure that investors are under: MVRV ratio, which measures the unrealized profits or losses held by investors in the cohort, SOPR, which measures the average magnitudes of profit or losses locked in by cohort, and Realized Loss which is the USD denominated magnitude of loss locked in the cohort.

Weekly-Monthly and Daily Traders

Daily traders are the most active and sensitive group, responding almost instantly to all price changes. Weekly-Monthly traders are less sensitive to price than Day Traders, but also more likely experience volatility, as the spot price fluctuates near their cost basis.

The new metrics provide a comprehensive overview of the different cohorts. This allows for valuable insights into the market dynamics, and helps to identify periods of exhaustion of sellers.

Conclusions

On-chain data offers analysts and investors a high degree of transparency regarding the actions, incentives and positioning of different market participants. Glassnode's new breakdown metrics allow investors to isolate subsets, allowing them to pinpoint micro-capitulation points that are often associated with local market lows. This allows investors to better predict and understand market movements.

Disclaimer: This article is not intended to provide investment advice. The data provided is for educational and informational purposes only. You are responsible for making your own decisions about investing and should not base any investment decisions on this information.

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Binance Launchpool introduces Omni Network (OMNI), Tokens

Binance announced that it will be introducing Omni Network (OMNI), tokens to its Launchpool platform. Binance Launchpool introduces its 52nd project. Omni Network is layer 1 blockchain that aims to unite Ethereum's rollup eco-system into a single system.

Users can place their BNB or FDUSD in different pools over a four-day period to farm OMNI Tokens. The farming process begins at 2024-04-13 00:00 UTC. Binance will list OMNI on 2024-04-17 12:01 (UTC), and open the trading pairs OMNI/BTC, OMNI/USDT, OMNI/BNB, OMNI/FDUSD, and OMNI/TRY.

Details about OMNI Launchpool

The maximum token supply for OMNI is 100,000,000. Launchpool token rewards have been set at 3,500,000 OMNI which is 3.5% max token supply. The initial circulating stock is 10,391,492 OMNI which is 10.39% the maximum token supply. KYC is required for staking and the hard cap of 546.87 OMNI per hour in FDUSD and 3,098.95 OMNI per user in BNB pool.

Pools of BNB and FDUSD Stake

Users can bet BNB with an estimated reward 2,975,000 OMNI (85%), or FDUSD with an estimate reward of 525,000 OMNI (15%). The farming period is from 2024-04-13 (00:00 UTC) to 2024-04-16 (23:59 UTC).

Users must meet certain requirements to be able to farm OMNI. Users must complete the account verification process and reside in an eligible jurisdiction. The list of excluded jurisdictions is subject to change due to local laws and regulations.

To ensure that their money is safe, users are advised to conduct their own research prior to investing in any cryptocurrency. Binance is currently the only platform that lists OMNI tokens. All claims of offering this token before the timeline are considered false advertising.

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