Cover image via U.Today

The cryptocurrency market shows bullish potential, with the global market cap rising 2.1% in the past day. However, despite this broader recovery following recent significant liquidations, XRP, Solana (SOL), and Dogecoin (DOGE) show a concerning trend: a significant decrease in the percentage of their supply held at a profit.

Decreased Profitability for XRP, SOL, and DOGE Holders

XRP, SOL, and DOGE experienced the largest percentage drops in the amount of their total supply held at a profit over the past 30 days. Glassnode, an on-chain analytics firm, reported that 81.5% of XRP holders are currently in profit, a decrease of 5.22% over the past month. Similarly, the percentage of profitable holders dropped to 53.6% for Dogecoin and 35.2% for Solana. The "Percent Supply in Profit" metric reflects the proportion of a cryptocurrency's total supply currently trading above its acquisition cost.

Glassnode's tweet highlighted these sharp declines:

?DOGE: −9.7pp → 53.6%
?XRP: −5.2pp → 81.5%
?SOL: −4.4pp → 35.2%

This data suggests declining profitability for holders of XRP, SOL, and DOGE. This aligns with XRP's recent price drop below $2 during a broader market downturn. In contrast, TON and BNB show strong holder conviction, with 94% and 86% of holders, respectively, currently in profit according to Glassnode.

Implications for XRP, SOL, and DOGE

While the "Percent Supply in Profit" is a lagging indicator, it offers valuable insight into overall market sentiment. Glassnode notes that during strong bull markets, over 90% of the supply is typically profitable. The current figures for XRP, SOL, and DOGE, however, suggest potential for further price depreciation.

Over the past week, XRP, SOL, and DOGE have declined by 12%, 9.4%, and 12.6%, respectively. Market sentiment appears to be shifting, raising the possibility of these coins retesting recent lows in the coming days. Read the original article on U.Today.