What does Short-Term SOPR tell us?

Over the past two months, while we saw price declines, blockchain data was actually sending out a strong signal: These movements aren’t the start of a major trend reversal, but part of a correction phase.

As you can see in the chart, "Short-Term Holder SOPR" measures the profit/loss realization of short-term investors.

SOPR > 1: Profit realization

SOPR < 1: Selling at a loss

What the data is telling us: Yes, there were sell-offs at a loss. This is normal during a correction. However, the extreme fear and panic created at X didn’t fully reflect in on-chain data.

In other words: While weak hands were selling, strong hands were accumulating.

Looking at the macro structure, we can see that selling pressure has eased, and the market is transitioning to a healthier phase. The positive outlook remains intact for the medium-to-long term.

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