Definition ∞ 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.
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