Definition. This chart presents the momentum of Dormancy Flow by cohort — Entity-Adjusted aggregate (orange), Long-Term Holders (blue) and Short-Term Holders (red) — expressed as the deviation of each cohort's Dormancy Flow from its own 365-day average, with a neutral zero line (dark grey) and price (grey) for reference.

Technical. Momentum is calculated as the relative deviation from the trailing-year mean:

• Dormancy Flow Momentum = (Dormancy Flow - sma(Dormancy Flow, 365)) / sma(Dormancy Flow, 365)

Dormancy Flow itself is the ratio between the value of a cohort's holdings and the rolling annual USD value of its coinday destruction, creating a time and volume weighted oscillator which compares the weight of holdings to expended holding time:

• Dormancy Flow = Cohort Supply x Price / sum(Dormancy x Price, 365)

Interpretation. Values above zero mean the cohort's Dormancy Flow is running above its one-year norm; values below zero mean it is depressed relative to trend. The underlying framework carries over:

• Low values of Dormancy Flow signal that the total value of supply held is low relative to the value of coinday destruction by that cohort — typical of low volatility and low on-chain activity rates by that cohort.

• High values of Dormancy Flow signal that the total value of supply held is high relative to the value of coinday destruction by that cohort — typical of periods of high on-chain expenditure by that cohort.

The momentum transform normalizes each cohort around zero, making turning points and cross-cohort comparisons easier to spot than in the raw Dormancy Flow levels.

Notes. The raw levels are charted at Dormancy Flow by Cohort; the underlying cohort dormancy series at Long- and Short-Term Holder Dormancy.