color code a scatterplot based on how close to other points each point is?

Hi Everyone,
I was wondering if there was a way to color code a scatterplot such that each point would be on a scale from red (min) to green (max) relative to how close it is to another point in the scatterplot. I currently have thousands of values in a scatterplot and it just looks like a mess, but I know that the points are more dense in one region compared to another.
Thanks,
Andy