Alert: Wave of Panic Selling Hits XRP – Here’s Why

• Glassnode data shows XRP investors increasingly selling XRP below purchase prices.
• XRP SOPR drops sharply, signaling rising panic selling across market participants.
• Current XRP on-chain signals resemble the prolonged consolidation phase of 2022.

Crypto analytics platform Glassnode has released new on-chain data highlighting a sharp shift in investor behavior surrounding XRP after a key profitability indicator dropped below an important threshold that separates profitable transactions from loss-driven activity.

According to Coinkolik, the Spent Output Profit Ratio (SOPR) indicator tracking XRP transactions declined from 1.16 to 0.96, signaling that many holders have begun transferring XRP at prices lower than their original purchase levels.

SOPR Indicator Shows Growing Loss Realization Across XRP Network

The SOPR indicator measures whether the XRP moved across the blockchain is sold at a profit or at a loss by comparing the price at which the coins last moved to the current transaction value. When the ratio remains above the value of one, it shows that investors are selling coins at a profit because the transaction price exceeds the earlier acquisition level recorded on-chain.

However, once the ratio falls below one, the metric indicates that transactions occur below the holder’s cost basis, meaning investors are realizing losses as coins move across the network. Glassnode’s chart tracking the 30-day exponential moving average of the SOPR indicator shows a gradual decline that developed over several sessions before reaching the current level near 0.96.

This downward movement indicates that earlier profit-taking activity has shifted into loss realization as coins purchased during previous rallies are now being transferred at lower prices. Transaction flows across the network increased during the same period as more holders moved coins between wallets and exchanges while adjusting positions.

Current Indicator Pattern Reflects Earlier XRP Consolidation Phase

The structure of the current SOPR movement closely resembles market conditions observed between September 2021 and May 2022, when XRP traded within a prolonged consolidation range.

Historical chart data shows that the indicator fluctuated near the break-even level during that earlier phase while investors gradually adjusted positions within the market. Glassnode data shows that XRP transactions are increasingly occurring at losses after the SOPR indicator declined from 1.16 to 0.96 while the asset moves through a similar market structure.

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