SOPR reset describes a condition where the Spent Output Profit Ratio (SOPR) metric, which compares the price at which a coin was spent to its acquisition price, returns to a value of one. This signifies that, on average, market participants are selling their coins at approximately their cost basis. It often occurs after periods of profit-taking or loss-realization. A SOPR reset suggests a neutralization of aggregate market profits or losses.
Context
The SOPR reset is a significant on-chain indicator frequently highlighted in crypto news, particularly during market corrections or at potential turning points. It can signal that a period of profit-taking has concluded, or that sellers who were at a loss have exited, potentially paving the way for a new market cycle. Analysts use this metric to assess market sentiment and potential price reversals.
The average Ethereum seller is now realizing a loss, confirming that weak hands have exited the market and significantly reducing future selling pressure.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
