Indicator Overview

The indicator measures the Net Realised Profit/Loss (NRPL), which is the net dollar value of profit or loss realised on-chain by all market participants.

This metric is calculated by comparing the total dollar volume of profits realised on-chain to the total dollar volume of losses realised on the same day. This provides a high-impact gauge of the aggregate monetary volume flowing into (net profit) or out of (net loss) the system due to sales. A positive value indicates the market as a whole is locking in more profit than loss, while a negative value indicates more loss-selling than profit-taking.

How To Use

The Net Realised Profit/Loss (NRPL) is a critical indicator for identifying macro-cycle peaks and troughs. Large, sustained positive spikes indicate massive profit-taking across the entire market. These events usually coincide with phases of extreme market exuberance, acting as strong signs of a major cycle top as holders rush to lock in gains. Conversely, deep negative troughs signal heavy, aggregate loss-selling by all holders. This is symptomatic of a major capitulation phase, which is historically characteristic of cyclical market bottoms, representing excellent contrarian buying zones. Periods where the NRPL line hovers close to zero suggest a balanced state where profit-taking is offset by loss-selling, typically observed during low volatility or consolidation phases.