Short-Term Supply Coin Days Destroyed (STS CDD) | BlockHorizon

TL;DR

• Short-Term Supply Coin Days Destroyed (STS CDD) measures the coin days destroyed when short-term holders move their coins.
• High STS CDD signals active speculation, profit-taking, or panic selling.
• Low STS CDD reflects reduced speculative behavior, calmer conditions, or accumulation.
• This metric is ideal for analyzing short-term sentiment, market volatility, and distribution dynamics driven by recent buyers.

Short-Term Supply Coin Days Destroyed Indicator (Chart Tutorial)

The Short-Term Supply Coin Days Destroyed (STS CDD) indicator focuses exclusively on the behavior of short-term holders — participants who acquired coins recently and are more likely to react quickly to price movements.

Unlike long-term holder metrics, STS CDD highlights speculative activity, emotional responses, and short-lived market dynamics. It is particularly effective for identifying profit-taking, panic selling, and momentum-driven behavior during rallies and corrections.

This makes STS CDD a powerful tool for understanding short-term sentiment shifts that often precede volatility.

What Is Short-Term Supply (STS) CDD? (Simple Definition)

To understand STS CDD, it helps to break it down step by step.

Coin Days

• Coin Days = number of coins × number of days unspent

Coin Days Destroyed (CDD)

• When coins move, their accumulated coin age is destroyed
• Recently acquired coins destroy fewer coin days than older coins

Short-Term Supply CDD

• STS CDD measures the total coin days destroyed only for coins held by short-term holders
• Short-term holders are typically defined as entities holding coins for a relatively short duration, often associated with speculative activity

Key Insight: STS CDD isolates fast-moving supply, making it far more sensitive to market sentiment and short-term price action than long-term metrics.

Why STS CDD Matters for On-Chain Analysis

Short-term holders are often the most reactive participants in the market.

Why Analysts Use STS CDD

• Tracks speculative behavior in real time
• Highlights profit-taking during rallies
• Detects panic selling during drawdowns
• Reflects emotional market responses
• Helps identify short-term distribution phases

Insight: Sharp changes in STS CDD often occur before or during periods of elevated volatility, making it a valuable early warning signal.

How to Read the STS CDD Chart

Interpreting STS CDD requires focusing on spikes, trends, and context.

High STS CDD Indicates

• Rapid movement of recently acquired coins
• Profit-taking during upward price momentum
• Panic selling during corrections
• Elevated speculative activity
• Increased short-term sell pressure

Low STS CDD Indicates

• Reduced activity among short-term holders
• Fading speculative interest
• Market calm or consolidation
• Potential accumulation by more patient participants

What to Monitor

• Sudden spikes during rallies
• Sustained increases during overheated markets
• Prolonged low levels after corrections
• Divergences between price and STS CDD

What High STS CDD Means

Elevated STS CDD reflects intense short-term activity.

High STS CDD Often Signals

• Aggressive profit-taking
• Momentum-driven speculation
• Emotional selling during downturns
• Short-term distribution near resistance levels
• Increased volatility risk

Why This Matters: Short-term holders tend to amplify market moves. Persistent high STS CDD suggests the market is being driven by speculative flows rather than conviction.

What Low STS CDD Means

Low readings suggest short-term participants are stepping back.

Low STS CDD Typically Indicates

• Reduced speculative trading
• Exhaustion of panic selling
• Market stabilization
• Potential transition toward accumulation
• Lower short-term volatility

Insight: Extended periods of low STS CDD often follow sharp corrections and may signal that weak hands have already exited.

Historical Patterns in STS CDD

STS CDD behaves differently across market phases.

Bull Markets

• Frequent spikes in STS CDD
• Short-term holders take profits into strength
• Elevated speculative churn

Bear Markets

• Suppressed STS CDD
• Reduced trading activity
• Declining speculative interest

Sideways / Neutral Markets

• Stable STS CDD levels
• Balanced short-term participation
• Compression before directional moves

How Traders & Analysts Use STS CDD

Practical Applications

• Identify speculative excess during rallies
• Detect panic-driven selling
• Gauge short-term market sentiment
• Anticipate volatility expansions
• Confirm distribution near resistance
• Support tactical trading decisions

STS CDD is especially effective when used alongside price action, volume, and long-term holder metrics.

Combining STS CDD With Other Metrics

STS CDD becomes even more powerful in context.

Common Pairings

• Long-Term Supply (LTS) CDD → conviction vs speculation
• 90D CDD → short-term noise vs macro behavior
• ASOL → average age of spent outputs
• Dormancy Flow → valuation and cycle positioning

Insight: High STS CDD combined with low LTS CDD often signals short-term speculation without long-term conviction.

Limitations of the STS CDD Metric

Important Considerations

• Highly sensitive to short-term volatility
• Can generate frequent spikes
• Does not identify specific wallets
• Less useful for long-term cycle analysis
• Should not be used in isolation

STS CDD works best as a tactical indicator, not a standalone signal.

Pro Tips for Using the STS CDD Chart

• Focus on spikes, not long-term averages
• Treat repeated spikes during rallies as caution signals
• Watch for collapsing STS CDD after panic events
• Compare STS CDD with price momentum
• Use divergences to anticipate volatility shifts
• Combine with long-term metrics for confirmation

Frequently Asked Questions (FAQ)

1. What does Short-Term Supply CDD measure?

It measures the coin days destroyed when short-term holders move their coins, reflecting speculative activity.

2. Who are short-term holders?

 Entities holding coins for a relatively short duration, often associated with trading and speculation.

3. What does high STS CDD indicate?

Increased speculative selling, profit-taking, or panic-driven movement.

4. What does low STS CDD indicate?

Reduced speculative activity and calmer market conditions.

5. Is STS CDD useful for long-term analysis?

Not on its own — it is best suited for short-term sentiment and volatility analysis.

6. Can STS CDD help identify market tops?

Elevated and persistent STS CDD during rallies can signal speculative excess near resistance levels.

7. Should STS CDD be used alone?

No — it is most effective when combined with long-term holder and macro indicators.

👉 View the Short-Term Supply Coin Days Destroyed chart on BlockHorizon:
https://charts.blockhorizon.io/metrics/79