ON-CHAIN ALERT: $XRP Holders Showing Signs of Capitulation
$XRP XRP has now fallen below the average cost basis of its holders, signaling a potential distribution phase in the market. One of the key on-chain indicators, the SOPR (Spent Output Profit Ratio), has declined sharply from 1.16 to 0.96.
A SOPR value below 1.0 typically indicates that investors are moving their coins at a loss, which often reflects growing panic and weakening market confidence. This shift is an important warning signal for overall market structure and short-term sentiment.
With $XRP currently trading near $1.43, the price action resembles the prolonged consolidation period observed between September 2021 and May 2022. During that phase, weaker holders exited positions while stronger hands accumulated, eventually setting the stage for the next major market move.
The current environment suggests that may continue building a range before establishing its next clear trend. Traders and investors should monitor liquidity zones and on-chain activity carefully, as these areas will likely determine the next significant breakout or breakdown.
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