<h2 id="heading-calculation">Calculation</h2>
<p>SOPR is calculated simply as (Price sold / Price bought)</p>
<h2 id="heading-sopr-values">SOPR values</h2>
<p>There are three possible values of SOPR.</p>
<ol>
<li><p>SOPR &gt; 1 </p>
<ul>
<li>The coin holder made a profit.</li>
<li>The selling price is higher than the buying price</li>
</ul>
</li>
<li><p>SOPR &lt; 1</p>
<ul>
<li>The coin holder made a loss.</li>
<li>Based on the formula above the selling price is lower than the buying price</li>
</ul>
</li>
<li><p>SOPR = 1</p>
<ul>
<li>The coin holder made no profit or loss.</li>
</ul>
</li>
</ol>
<p>Here is an example of ETH SOPR:</p>
<p><img src="https://cdn.hashnode.com/res/hashnode/image/upload/v1640410025388/Cr9AQCgqS.png" alt="image.png" /></p>
<h2 id="heading-indication-by-sopr">Indication by SOPR</h2>
<p>What does this SOPR indicate?</p>
<ul>
<li>In general, higher SOPR values indicate that more profit was realised that day. Successive peaks of high SOPR (creating an indicator uptrend) suggest continual distribution, usually during bullish price rallies. </li>
<li>A lower SOPR indicates fear and panic selling in the market.</li>
</ul>
<h2 id="heading-references">References</h2>
<ul>
<li><a target="_blank" href="https://academy.glassnode.com/indicators/sopr/sopr-spent-output-profit-ratio">Glassnode</a></li>
<li><a target="_blank" href="https://medium.com/unconfiscatable/introducing-sopr-spent-outputs-to-predict-bitcoin-lows-and-tops-ceb4536b3b9">Introducing SOPR</a> by Renato Shirakashi</li>
</ul>


## Calculation

SOPR is calculated simply as (Price sold / Price bought)


## SOPR values

There are three possible values of SOPR.


1. SOPR > 1 
  - The coin holder made a profit.
  - The selling price is higher than the buying price

2. SOPR < 1
  - The coin holder made a loss.
  - Based on the formula above the selling price is lower than the buying price

3. SOPR = 1
  - The coin holder made no profit or loss.

Here is an example of ETH SOPR:

![image.png](https://cdn.hashnode.com/res/hashnode/image/upload/v1640410025388/Cr9AQCgqS.png)

## Indication by SOPR

What does this SOPR indicate?

- In general, higher SOPR values indicate that more profit was realised that day. Successive peaks of high SOPR (creating an indicator uptrend) suggest continual distribution, usually during bullish price rallies. 
- A lower SOPR indicates fear and panic selling in the market.

## References

- [Glassnode](https://academy.glassnode.com/indicators/sopr/sopr-spent-output-profit-ratio)
- [Introducing SOPR](https://medium.com/unconfiscatable/introducing-sopr-spent-outputs-to-predict-bitcoin-lows-and-tops-ceb4536b3b9) by Renato Shirakashi


SOPR is an indicator in Cryptocurrencies that reflects the degree of realised profit and loss for all coins moved on the Blockchain

What is SOPR (Spent Output Profit Ratio)?

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