High FDV Means Decline? ---- STRK
More and more tokens are choosing the mode of high FDV and low circulation ratio in the setting of TGE. The tokens that adopt this model have fallen. The most notable example is STRK. Starknet, as L2, started TGE in February.
As one of the representatives of ZK verification, STRK should have had strong market expectations, but the project team has adopted a radical tokenomic model. After TGE, STRK’s FDV reached US$10 billion, almost equal to the FDV of L2 head token OP. OP gained US$10 billion in FDV by virtue of its optimistic mechanism and the OP alliance built by the OP stack. At that time, Starknet's ecosystem was very poor and did not have the same strength as Optimism. So predictably a long decline has begun.
Although the daily level does not provide a signal due to insufficient data, TSB gives a SELL signal whether at 1h or 4h. Just like in the picture, at the 1h level, STRK continues to fall, and after approaching the wavy area, the short strength increases.
In summary, after understanding STRK's token economic model, you can use the TSB indicator to open short positions, which will bring you objective profits.
Introduction to indicators:
Trend Sentinel Barrier (TSB) is a trend indicator, using AI algorithm to calculate the cumulative trading volume of bulls and bears, identify trend direction and opportunities, and calculate short-term average cost in combination with changes of turnover ratio in multi-period trends, so as to grasp the profit from the trend more effectively without being cheated.
KDMM (KD Momentum Matrix) is not only a momentum indicator, but also a short-term indicator. It divides the movement of the candle into long and short term trends, as well as bullish and bearish momentum. It identifies the points where the bullish and bearish momentum increases and weakens, and effectively capture profits.
Disclaimer: Nothing in the script constitutes investment advice. The script objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the script are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
