Olympus OHM has crashed by 91% from its all-time high
- Olympus DAO’s native token hit $1,415 at its peak in 2021, and it has dropped 91.8% from an all-time high.
- Experts believe that capitulation by whales triggered a drop in the Ethereum based token’s price.
- Crypto influencers have criticized Olympus’s native token OHM and referred to it as a Ponzi scheme.
- Analysts believe that Olympus price is in the buy zone.
Experts believe a prominent wallet investor triggered a cascade of liquidations in the Olympus DAO protocol’s native token. The sell-off has triggered a 40% drop in Olympus price over the past week.
Olympus price suffers bloodbath, drops 40% within a week
Olympus, an Ethereum based DAO, has suffered a massive drop after hitting an all-time high in 2021. The protocol onboarded several new users seeking a high annual percentage yield (APY). Olympus price has posted over 40% losses in the past week.
Chinese journalist Colin Wu believes that cascading liquidations by large wallet investors were the key to the price drop. While influencers argue that Olympus DAO is a Ponzi scheme.
The algorithmic currency protocol was classified as high risk by crypto research firm Delphi Digital. Olympus’s native token is in a downtrend as early investors booked their gains in 2021.
An Olympus whale, @shotta_sk, sold $11 million worth of OHM tokens causing a 25% slippage and $5 million in liquidations for the algorithmic protocol.
The whale used SushiSwap to exchange 82,526 Olympus tokens for $11 million DAI tokens. The large wallet investor has sold his holdings in the algorithmic protocol token. He was quoted in a recent tweet:
Derisked some of my OHM to ensure my family can weather any economic outcome. Remaining risk on with the rest indefinitely.
Analysts have evaluated the Olympus price trend and predicted that this might be the right time to buy the algorithmic protocol token. @AltcoinSherpa, a pseudonymous crypto analyst and trader, commented on the token’s price.
$OHM: If thinking about buying this, this probably isn't a bad area. That said, I realize that TA doesn't help as much with these types of projects. pic.twitter.com/TA275clRCG
— Altcoin Sherpa (@AltcoinSherpa) January 17, 2022
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
