The chart calculates the share of coins whose current price exceeds their acquisition price (i.e., KAS coins in profit). It smoothes the data over 30 days (30-day moving average, or 30 DMA) and 50 days (50-day moving average, or 50 DMA), helping to remove volatility and provide clarity on long-term sentiment shifts. Thus, it takes the focus away from daily spikes or dips. 

Why is it Important? 

The chart illustrates the extent to which the general market is holding onto KAS at a profit or a loss, which helps charts spot market tops or bottoms.

How to Read the Chart:

1. The Market Price (The gray line) traces the daily USD market price of KAS plotted on the right-hand y-axis.

2. The average percentage of the supply in profit smoothed over a 30-day moving average (the orange line). 

3. The average percentage of the supply in profit smoothed over a 50-day moving average (the red line). 

A high value (e.g., > 70%) signals that most holders are in profit. This is typically seen in bullish markets but can also precede profit-taking near the top. 

In contrast, a low value (e.g., < 5%) indicates widespread losses and often marks capitalization zones or market bottoms. 

Want to Learn more? 

For further research, see Rafael Schultze-Kraft’s, “Dissecting Bitcoin's Unrealised On-Chain Profit/Loss.” 

Also, check out the Percent Supply in Profit chart, the Percent Supply in Loss Chart, and the Net Unrealized Profit/Loss (NUPL) Chart.