Recently, someone asked me how to better interpret whale behavior on the chain.

It turns out there is a quite useful indicator that many still don't know well: the SOPR.

It's actually pretty simple. The SOPR (Spent Output Profit Ratio) shows you whether the coins moving on the chain are being sold at a profit or a loss.
The formula is straightforward: sale price divided by purchase price. Nothing complicated.

Now, the interesting part comes when you interpret the numbers.
If the SOPR is above 1, it means that on average, coins were sold at a profit that day.
When it drops below 1, those moving their coins are doing so at a loss.
And if it hits exactly 1, it's the break-even point.

What catches my attention is what happens when you see consecutive spikes of elevated SOPR.
That generally indicates continuous distribution, typically during a price rally.
The more circulating coins are spent, the higher the likelihood of seeing a local top or even a more significant top in the market.

Seriously, learning to read the SOPR can change how you view market cycles.
It's one of those on-chain indicators that most ignore, but those who truly understand it use it constantly.
If you want to anticipate strong moves, it's definitely worth monitoring this indicator on Gate and seeing how it behaves during bullish surges.