When a large majority of holders are “in the money,” it suggests that current market prices have exceeded the average purchase price for most addresses. This can be a sign of strong bullish momentum but also signals that many stakeholders might be poised to sell once price gains slow, creating potential resistance.
On the other hand, it can indicate a structural support zone. If prices dip back toward ranges where fewer coins are profitable, selling pressure may lessen, as fewer holders feel compelled to bail out at a loss. This dynamic often helps form a durable floor in volatile markets.
