The Sell-Side Risk Ratio monitors market equilibrium by assessing profit and loss realization:
- High values indicate significant profit or loss taking following volatile market movements.
- Low values suggest coins are being spent near their cost basis, indicating a balanced market.
Following profit-taking at all-time highs, Short-Term Holders have significantly reduced their selling pressure. The current prices are not enticing enough to prompt substantial distribution; a major price movement, either upward or downward, may be necessary to release additional supply.