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Title: 95% of ONT holders still in red despite 33% hike – Price ceiling ahead?
The Ontology (ONT) market has witnessed a significant price surge, with the asset gaining by 33.84% in just two hours on January 13th. While this sudden increase may have excited traders and investors seeking opportunities, a closer examination of the on-chain metrics reveals that ONT holders are still largely underwater despite the recent gain.
In fact, as much as 95.57% of all addresses holding ONT were out of the money at press time, indicating that further price gains would be met with considerable selling pressure from these underwater holders trying to get out at break-even or a slight profit. This bears an ominous resemblance to the trend we saw in May 2021, when TVL (Total Value Locked) began its steady decline.
The current bear market conditions and decline in on-chain activity have likely led to users shifting their funds to more promising opportunities elsewhere. Moreover, it’s been observed that ONT volume trends do not mirror recent bullish conditions.
Furthermore, there is a growing concern among investors as the TVL of the Ontology chain has continuously trended downwards since May 2021. This bears no resemblance to the typical market dynamics we see in other assets.
Another crucial aspect that caught our attention was the decline in development activity from 2018 to 2022 and the consistent low levels since then, which mirrors the price action trends as well.
Source: ambcrypto.com
