Prior to this recovery, STH SOPR spent an extended period below 1.0, reflecting sustained loss realization among short-term holders. More importantly, there was a period where the metric sharply deviated below the 0.95 level, a move that is consistent with a capitulation-like phase.
Because this capitulation occurred before the current move, the recent reclaim and stabilization above 1.0 can be interpreted as evidence that selling pressure from short-term holders has already been absorbed, increasing the probability of further upside continuation.
If STH SOPR breaks back below 1.0 and fails to recover quickly, this scenario would need to be reassessed.
Written by miracleyoon