XRP Dips Below Cost Basis as SOPR Plunges to 0.96
XRP drops below investor cost basis with SOPR falling to 0.96, signaling panic selling similar to the 2021–2022 phase.
- XRP’s SOPR drops from 1.16 to 0.96, triggering panic among holders
- The decline mirrors the 2021–2022 consolidation phase
- Negative sentiment grows as XRP trades below cost basis
XRP has entered a troubling zone after its Spent Output Profit Ratio (SOPR) sharply dropped from 1.16 to 0.96. This means that on average, XRP holders are now selling their tokens at a loss. The SOPR is a key metric that measures the profit ratio of coins moved on-chain. A value above 1 suggests holders are selling at profit, while below 1 signals losses.
This shift has rattled the market. XRP is now trading below the average cost basis for most holders. Historically, this has triggered panic selling, where investors rush to offload assets in fear of further declines. This exact behavior was seen between September 2021 and May 2022—an extended consolidation period where XRP remained range-bound after a sharp drop.
Revisiting the 2021–2022 Pattern
The current price action is eerily similar to what happened in late 2021 through mid-2022. During that time, XRP repeatedly tested lower support zones and struggled to regain bullish momentum. The SOPR remained under 1 for long stretches, reflecting a lack of confidence among retail and institutional holders.
With SOPR again dipping below 1, analysts are warning that XRP could re-enter a similar prolonged downtrend if sentiment doesn’t shift. Unless strong buying pressure emerges or positive fundamentals return, this could become a repeat of XRP’s earlier stagnation phase.
What Comes Next for XRP?
While a drop below cost basis can indicate oversold conditions, it doesn’t always guarantee a quick rebound. For a reversal, XRP needs renewed interest, possibly from bullish news around the Ripple-SEC case or broader crypto market strength.
In the short term, volatility is expected to continue. Traders and long-term holders alike should keep a close eye on SOPR trends, trading volumes, and macro news that could tilt sentiment.
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