Solana (SOL) Crashes 15% After Massive Profit-Taking Spike
05 Mars 2025 - 3:00AM
NEWSBTC
On-chain data shows that investors on the Solana network
participated in significant profit-taking ahead of the asset’s
latest retrace. Solana Realized Profit Registered A Sharp Spike
Yesterday According to data from the on-chain analytics firm
Glassnode, the Realized Profit observed a huge spike for Solana
recently. The “Realized Profit” here refers to an indicator that,
as its name suggests, keeps track of the total amount of profit
that the investors are ‘realizing’ through their selling. The
metric works by going through the transfer history of each coin
being sold on the blockchain to see what price it was transacted at
prior to this. If this previous selling price for any coin was more
than the current spot price, then that particular token’s sale is
leading to profit realization. Related Reading: This Bitcoin Range
The Next Key Resistance, Analytics Firm Says The Realized Profit
takes the difference between the two prices to calculate the exact
amount of profit involved in the transaction and sums it up for
sales across the network. In the context of the current topic, the
usual Realized Profit isn’t the metric of interest, but rather a
derivative form known as the Realized Profit by Age. This indicator
basically tells us about how the SOL profit-taking is distributed
among the various coin age bands. An “age band” is a time-range
within which coins part of the band were last moved. The 1-week to
1-month age band, for instance, refers to the part of the supply
that was last involved in a transfer between one week and one month
ago. Now, here is the chart shared by the analytics firm that shows
the trend in the Solana Realized Profit by Age over the last few
months: As is visible in the above graph, the aggregated Solana
Realized Profit observed a huge spike on Monday following the
recovery in the cryptocurrency’s price toward the $180 mark. The
sharp rally in the coin came after United States President Donald
Trump announced a Crypto Strategic Reserve that is going to include
five digital assets, one of which is SOL. Related Reading: Crypto
Liquidations Near $1 Billion As Bitcoin & Altcoins Bounce Back
It would appear the investors were keen to cash in on this
opportunity, as the SOL Realized Profit shot up to an hourly value
of over $257 million, making the profit-taking event one of the
largest in the last couple of months. Interestingly, as the chart
displays, 99% of the aggregated profit realization (around $255
million) came from the 1-day to 1-week age band alone. This would
suggest that the profit-taking spree was almost entirely due to
investors who bought during last week’s dip, capitalizing on their
quick gains. SOL Price Solana has crashed following the
profit-taking selloff as its price has returned back to $136.
Featured image from Shutterstock.com, Glassnode.com, chart from
TradingView.com
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