BNB has remained one of the few major cryptocurrencies to form a new all-time high (ATH) even as the broader market struggled. 

However, after a strong rally, the Binance ecosystem token may face turbulence. A growing number of short-term holders appear poised to take profits, signaling potential volatility ahead.

BNB Holders Susceptible To Selling

The Spent Output Profit Ratio (SOPR) is reflecting early signs of waning profitability among BNB investors. The most recent readings are hovering near the neutral 1.0 level, indicating that holders are realizing minimal profits. While this does not yet imply losses, it highglights that BNB’s profit margins are tightening.

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If the SOPR dips below 1.0, it would signal that investors are selling at a loss. Historically, this tends to trigger selling fatigue, often allowing prices to stabilize and recover. However, BNB’s current position above this mark suggests that profit-taking remains active, leaving the altcoin vulnerable to continued downward pressure.

BNB’s short-term holder Net Unrealized Profit/Loss (STH NUPL) has recently spiked above the 0.25 threshold, historically a warning signal. Breaching this level has often preceded a saturation of profits among short-term investors, leading to waves of selling and subsequent price reversals.

The current NUPL data suggests that many short-term holders are sitting on sizable gains, increasing the likelihood of sell-offs in the near term. With no clear bullish indicators emerging on the macro front, BNB could be entering a cooling phase, where consolidation or correction becomes increasingly probable.

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Author: Aaryamann Shrivastava