According to @glassnode, the Realized Profit Loss Ratio 90D SMA is trending lower near 1.5 and moving toward 1, indicating progressively thinner crypto liquidity (source: @glassnode). According to @glassnode, a sustained break below 1 has historically coincided with broad capitulation as realized losses dominate profit taking across the market (source: @glassnode). According to @glassnode, any meaningful transition back to a strong rally should be visible in this liquidity sensitive indicator, with a sustained rise above about 5 historically signaling renewed liquidity inflows (source: @glassnode). According to @glassnode, traders should monitor this on chain metric for downside confirmation below 1 and upside confirmation above about 5 as liquidity conditions shift (source: @glassnode).

According to @glassnode, the 90-day SMA Realized Profit/Loss Ratio fell from a peak of 19 to about 1.7, signaling a sharp shift in market demand and rising investor frustration (source: @glassnode). Glassnode notes that current conditions echo low-liquidity phases similar to 2018 and 2022 and urges traders to track this on-chain realized profit loss ratio as a liquidity-sensitive indicator (source: @glassnode). Glassnode adds that a sustained rise above around 5 has historically indicated renewed liquidity inflows and a transition toward stronger rallies, making that threshold a key confirmation level for trend recovery (source: @glassnode).