This chart indicator shows the total unrealized profits or losses of all KAS held. In other words, the chart indicates whether the overall KAS market is in profit or loss, flagging potential tops or bottoms.

Unrealized profits or losses are calculated by subtracting the KAS's Realized Value from its Market Value. This value is then divided by the KAS's market capitalization, as shown in the following formula. 

NUPL = ( Market Cap − Realized Cap ) / Market Cap

Whereby, 

NUPL > 0: most holders are in unrealized profit

NUPL < 0: most holders are in unrealized loss

The market value is the current price of KAS multiplied by the number of KAS coins in circulation. The realized value, on the other hand, is the value of all KAS coins at the price they were last transacted, divided by the number of the circulating supply of KAS. 

Why is it important? 

By breaking down different percentages of KAS's Relative Unrealized Profit/Loss, we can determine what stage of the market we are in, whether it's a market high or a market low. 

How to read the chart?

• NUPL above zero: Most KAS holders are sitting at a profit—watch for rising seller pressure.

• NUPL well above 0.5 -- 0.7: The market may be overheating—some long-term holders may start taking profits, and the market might be near a top.

• NUPL in the lower percentiles: This could be a potential bottom or an undervalued region.

• NUPL below zero: Widespread paper losses—a possible signal of a bottom forming if sentiment turns. 

An increasing NUPL means more are gaining, which could lead to a shift toward selling. A decreasing NUPL indicates increasing losses and fading sell pressure.

Want to Learn More?

See the following article, “A Primer on Bitcoin Investor Sentiment and Changes in Saving Behavior,” by Adamant Capital for a more detailed explanation.