XRP Investors Facing Potential Losses as SOPR Drops Below 1

The cryptocurrency market has been experiencing a downturn in recent weeks, and XRP is no exception. According to on-chain data fetched by Finbold from Glassnode, a crypto analytics platform, the Spent Output Profit Ratio (SOPR) of XRP has dropped below 1.

This means that investors are selling their XRP holdings at a loss, which could lead to further price drops. The SOPR is an important metric in determining whether tokens moved on the blockchain are realizing profits or losses. A drop below 1 indicates that holders have been selling at a loss in the past four weeks.

This trend is reminiscent of the consolidation period between September 2021 and May 2022, when XRP's price experienced a significant drop of more than 50%. If this pattern repeats itself, XRP's price could be on the cusp of further capitulation.

However, not all hope is lost for XRP investors. According to Santimient, whales and sharks have been buying up the asset since the October crypto crash, accumulating 4.18 billion units. This cohort now holds 19.61 billion coins, which represents 32% of its total circulating supply.

This could potentially prevent further selloffs, but it's still unclear what the future holds for XRP's price action.