XRP, Solana and Dogecoin Display Uniform Bearish Metric: Details

The crypto market shows bullish potential, with the global market cap increasing by 2.1% over the previous day. Despite the recovery following epic liquidationsRipple’s associated XRP, Solana (SOL) and Dogecoin (DOGE) demonstrate uniform bearishness in a key metric: the percent supply in profit.

XRP, SOL, DOGE holders becoming less profitable

XRP, SOL and DOGE saw the highest percentage drop in the total supply of the respective digital currencies in profit over the past 30 days.

In a new X poston-chain analytics firm Glassnode noted that 81.5% of XRP holders are in profit. This comes after the Percent Supply in Profit metric decreased by 5.22% over the past month.

Likewise, the metric decreased to 53.6% and 35.2% for Dogecoin and Solana holders, respectively. For context, the Percent Supply in Profit metric indicates the percentage of a cryptocurrency’s total supply currently in profit. This metric allows investors to better understand the current state of the market for a given digital asset.

Therefore, data from Glassnode suggests that XRP, SOL and DOGE holders are becoming less profitable. This is justifiable, considering the XRP price dropped below $2 recently amid a market drawdown. On the other hand, TON and BNB’s profit metrics show strong holder conviction. According to Gassnode, 94% and 86% of TON and BNB holders are in profit, respectively.

Implication for XRP, SOL and DOGE

While the Percent Supply in Profit indicator is often considered a lagging indicator, it is useful when determining overall market sentiment.

Related

Glassnode suggests that over 90% of all supply is profitable during “pronounced bull markets” due to price appreciation. Conversely, XRP, SOL and DOGE suggest potential price depreciation based on the Percent Supply in Profit indicator.

As of press time, XRP, SOL and DOGE have experienced declines of 12%, 9.4% and 12.6% over the past week. The market sentiment is shifting, with the likelihood the coins will retest local highs in the coming days.