On Monday, 13 January, Ontology [ONT] saw a significant surge of 33.84% within just two hours. This surge resulted in a more than 400% increase in Open Interest as traders hurried to capitalize on potential profitable opportunities.
Despite the initial spike, ONT quickly retraced its gains. While there is still a positive outlook for the cryptocurrency in the upcoming days, with the $0.246 price level acting as strong support during retests, some key indicators suggest caution. The OBV experienced a significant decline, and the RSI dipped below the neutral 50, indicating a bearish trend.
Key Shared Insights Regarding Ontology Metrics
As per data from IntoTheBlock, a striking 95.57% of ONT addresses were currently at a loss, while only a marginal 3.08% were in profit. This suggests that any future price upticks might face substantial resistance from holders looking to break even or make slight gains.
Additionally, the Total Value Locked (TVL) on the Ontology chain has been steadily decreasing since May 2021, plummeting from $379.09 million to $8.48 million currently. This downward trajectory likely reflects a diminishing investor confidence in the project.
The bearish market sentiment from previous years, coupled with reduced on-chain activity, has possibly prompted users to explore alternative investment avenues. Despite recent bullish trends, the returning user base has not seen significant growth, as evidenced by observable ONT volume patterns.
Another concerning aspect is the consistent decline in development activity on the platform over the past few years. Both development metrics and social volume have mirrored the downward pricing trends, indicating a lack of active engagement with the project.
Collectively, these metrics suggest a diminishing interest in the Ontology platform. With users seemingly exploring other opportunities despite short-term price fluctuations, investors might be considering shifting their focus towards more promising ventures.