Despite the Recovery Following Epic Liquidations, XRP, Solana (SOL), and Dogecoin (DOGE) Demonstrate Uniform Bearishness

The crypto market shows bullish potential, with the global market cap increasing by 2.1% over the previous day.

The crypto market is displaying bullish potential with the global market cap increasing by 2.1% over the previous day. Despite the recovery following epic liquidations, Ripple’s associated XRP, Solana (SOL) and Dogecoin (DOGE) are demonstrating 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 post, on-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.

"The biggest declines in the 30-day change of the Percent Supply in Profit belong to ATOM, LINK, and ADA, all with decreases ranging from 3.6 to 4.4 percentage points. XRP follows closely with a decrease of 5.2 percentage points to reach 81.5 percent of the supply in profit."

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.

"For example, if an asset has a circulating supply of 100 coins and 75 are in profit, then the Percent Supply in Profit is 75 percent."

Moreover, the on-chain analytics firm added that the ATOM, LINK, and ADA price movements saw less change in the last 30 days compared to XRP, SOL, and DOGE.

"The smallest changes belong to ATOM, LINK, and ADA, with increases of 3.6, 3.7, and 4.4 percentage points, respectively. This indicates a more stable price performance for these assets compared to the others."

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.

"The highest percentages belong to TON and BNB, with 94 percent and 86 percent of holders in profit, respectively. This indicates exceptionally strong buying pressure and a belief in the long-term value of these assets among investors."

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.

According to Glassnode, during "pronounced bull markets," the Percent Supply in Profit usually converges towards 90 percent or more. This scenario occurs as the price increases, gradually rendering a greater portion of the coins in circulation profitable.

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.