Ondo (ONDO), the native token of the decentralized finance (DeFi) protocol known for offering fixed-yield loans backed by yield-generating crypto assets, is making waves in the market. After a sharp decline in early August, ONDO is beginning to show signs of recovery, sparking interest among traders and analysts alike.
On August 5th, ONDO reached a low of $0.52, but since then, the token has climbed by 7% over the past week, with an additional 4.3% surge in just the past 24 hours. This rebound comes as crypto enthusiasts speculate on whether ONDO could experience a major breakout in the coming months.
Technical Signals Point To A Potential Rally
Renowned crypto analyst Captain Faibik recently shared a bullish prediction for ONDO, suggesting the token could be on the verge of a significant rally by the end of Q4 2024. Faibik’s technical analysis highlighted a falling wedge pattern, a chart formation often interpreted as a sign of an upcoming price breakout.
In a post on X (formerly Twitter), Faibik stated that ONDO’s current price movements align with historical patterns that typically lead to rallies. His forecast has generated excitement among ONDO traders, with many watching closely to see if the token can surpass previous price records.
The next few weeks could be pivotal for ONDO, with the market waiting to see if the falling wedge pattern translates into a full-fledged upward rally.
What Do ONDO’s Fundamentals Say?
While technical analysis offers a hopeful outlook, ONDO’s fundamentals paint a more nuanced picture. A key factor to watch is whale activity—transactions worth $100,000 or more. According to data from IntoTheBlock, whale transactions involving ONDO have sharply declined in recent weeks. After peaking at over 60 transactions in late August, the number has since dropped to just 12.
This drop in high-value transactions could signal a decrease in demand from large investors, which might temper expectations of a near-term rally. It raises questions about whether the current price surge is sustainable, particularly without strong backing from major market players.
Another crucial metric to consider is Open Interest, which measures the total number of open contracts in futures and options markets. According to Coinglass, ONDO’s Open Interest has increased by 4.69%, reaching $83.12 million. This uptick suggests that traders are opening new positions, possibly betting on further price gains for the token.
However, there’s a caveat—while Open Interest is rising, trading volume has dropped by 17.91%, down to $86.67 million at press time. This divergence between Open Interest and volume may indicate mixed market sentiment. More contracts are being opened, but the lower trading volume suggests a lack of conviction among traders.
Also Read: Can Ondo (ONDO) Reclaim $1? Profit Spree Limits Recovery, Downward Risk Persists ($0.73 Target)
Mixed Signals Leave ONDO’s Future Uncertain
The outlook for ONDO remains uncertain. While technical indicators like the falling wedge point to a potential rally, the fundamentals—especially declining whale activity and trading volume—suggest caution. The divergence between rising Open Interest and lower volume may signal indecision in the market, leaving traders unsure of the token’s future trajectory.
As the DeFi sector continues to evolve and ONDO navigates these mixed signals, the token’s performance in the coming weeks will be closely watched. Will ONDO break out and rally as Captain Faibik predicts, or will the current market conditions hold it back? Only time will tell.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
