HODL Waves

HODL Waves are a visualization tool used to track the age distribution of the circulating supply of a digital asset. They categorize the supply based on the last time each unit was moved, showing what percentage of the supply has been held for various time horizons.

These waves provide insight into the behavior of long-term holders versus short-term speculators. During bull markets, one often observes older waves shrinking as long-term holders sell into the rally, while new waves grow.

In bear markets, the older waves tend to expand as investors accumulate and hold through the volatility. HODL Waves are an excellent indicator of market maturity and investor conviction.

They help analysts understand the supply side of the market and the potential for future selling pressure. By identifying shifts in holding patterns, one can gauge the market's sentiment toward the long-term value of the asset.

It is a powerful method for analyzing historical accumulation and distribution phases.