A thread on the price cycles of $OHM 👇
For an investment product with such high returns, it is natural that some investors want to cash out now and then. In the case of OHM, a few months has been enough to make 5x on your investment (give stable price).
Selling is triggered by seeing (in some investor’s view) better investment opportunities somewhere else. Recentely, we have seen ETH and other coins roaring back from the lows. It is natural that some people don’t want to miss that price run.
Once some investors cash out, more investors will sell as they see the price of OHM go down. When will it stop? When investors that can cash out with good profit has done so. For new investors, it’s more likely they try to stake themselves out of the loss and into profit.
As an OHM investor you probably have to account for this rotation in the investor base every few months. A wise investor, however, is not selling their coins when demand is lower than supply, but when demand is higher.
Does this mean that you should hold forever in any situation? Well, as with other assets you have to keep an eye on the health of the business. Bad health or failed business strategy = swallow the loss and sell to save what you can.
How is the health of @OlympusDAO? The number of OHM holders are increasing (double from 1 month ago) and the sales of bonds are better than ever (7 day moving average = >$500K. +60% since one month ago)
Good sales means more yield for you and that we can continue enjoy a 300 day runway 💪
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