Trader Tips: Average HODL Price
Published in
Apr 7, 2022
Tip 1
The token price may drop when near or above avg hodl price as avg hodl price represents most traders’ break-even point.
e.g., LooksRare (1M) made two attempts to break the avg hodl price of $2.8 but failed.
Tip 2
If the avg hodl price goes up when the token price rises, it may further support the uptrend. As it indicates traders are buying the rise.
e.g., LooksRare (LOOKS) Jan 10 — Feb 5
- Avg hodl price keeps increasing,
- recorded two price peaks during this time
Tip 3
The gap between avg hodl price & current price turns wide to narrow. It may signal the price bottom
- Widening gap: the price is falling and traders are selling. (eg, LooksRare Feb 5-Feb 27)
- Closing gap: the price is rising, and traders are buying back. (eg, $LOOKS Mar 12–28)
