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The three biggest cryptocurrencies Bitcoin, Ethereum, and XRP are currently flashing warning signs, according to data from on-chain analytics firm Santiment. The indicator raising eyebrows is the Percent of Total Supply in Profit, which tracks the percentage of a cryptocurrencys circulating supply currently sitting in profit.

With all three major coins exceeding their historical averages in this metric, concerns are mounting that a mass selloff could be on the horizon. Investors often take profits when their holdings are in the green, and with a large portion of the supply currently profitable, the temptation to sell may become irresistible.

Historically, Bitcoin, Ethereum, and XRP have averaged between 55% and 75% of their supply in profit. All three sit above this range, firmly within what Santiment defines as the high-risk zone.

While external factors like increased exposure from ETFs could still push prices higher in the short term, Santiment emphasizes that a drop below 75% supply in profit would be a great signal, indicating continued long-term growth.

Currently, 84% of Ethereums supply and 83% of Bitcoins are in the green, with XRP trailing slightly behind at 81%. Historically, these figures have often preceded significant selloffs, as investors holding profitable positions become more likely to cash out.

While this data doesnt guarantee an imminent crash, it does raise a red flag for investors. With a large portion of each assets supply already in profit, the potential for a mass selloff is heightened. This is especially true if broader market conditions turn sour or negative news specific to any of the three cryptocurrencies emerges.

The current high levels of Percent of Total Supply in Profit suggest a heightened risk of price corrections for Bitcoin, Ethereum, and XRP. While not a definitive prediction of a downturn, this metric is a valuable indicator for investors to watch as they navigate the ever-volatile world of cryptocurrencies.

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Bitcoin, Ethereum, and XRP Flash On-Chain Warning Signs - DailyCoin