01Definition
A supply zone is an area where observed or suspected inventory may meet returning buyers.
02Why it matters
Old highs can attract profit-taking or breakeven selling, but that explanation still needs evidence.
03What to check
- Repeated rejection near the same area
- Sell sizes and surrounding activity
- External history for suspected holder entries
04Healthy / Dangerous
Healthy
The zone is treated as a hypothesis and tested against fresh reactions.
Dangerous
A drawn rectangle is assumed to reveal exact sellers and inventory.
05Beginner mistake
Treating resistance as geometry without investigating the selling.
06Takeaway
Look for supply behind the repeated rejection.
See the idea
- 01
A token previously reached $1M MC, then fell to $400k.
- 02
Selling repeatedly appears as it revisits $900k–$1M.
- 03
That is a supply-zone lead; trapped-holder identity remains unproven.
Try it on a token
See it in Meme Fast → InspectCompare observed sells with estimated MC tiers. These tiers summarize activity; they do not identify holder cost basis or a guaranteed resistance zone.
Go deeper
Reported MC tiers depend on the price-to-supply estimate. Different pools, missing swaps, or changing supply can limit the comparison. Wallet inventory and entry levels need independent history.
Need the basics? Revisit 101A →