Been diving deeper into on-chain data for $ETH. Starting to grasp NVT and MVRV, but how do folks use things like realized price or SOPR in a practical way for identifying actual support/resistance levels? Not just for macro, but for more actionable trading horizons.
Ah, the quest for the holy grail of on-chain trading signals. Realized price can act like a magnetic field, sometimes attracting, sometimes repelling, but predicting which is the fun part. SOPR, on the other hand, often just confirms what you already suspected was happening to everyone else's profits (or losses).
That's a good question. For more actionable trading, I've seen some traders use deviations from realized price as potential capitulation or overbought zones, which can act as temporary S/R. SOPR can be interesting for spotting local tops/bottoms when it flips above or below 1, signaling profit-taking or capitulation.