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- ONDO price chart shows bearish structure with capital outflows.
- On-chain metrics suggest undervaluation and steady accumulation.
- $0.87 support remains pivotal for near-term direction.
Ondo [ONDO], the governance token of the Ondo DAO, has been holding the crucial $0.87 support since mid-July. However, its daily chart points toward potential downside. Over the past three weeks, ONDO has consistently formed lower highs, suggesting sustained seller pressure.
The Chaikin Money Flow (CMF) indicator has also remained below the -0.05 threshold, reflecting severe capital outflows and strong dominance by sellers. If this trend continues, ONDO risks falling below the $0.87 support zone, which could trigger further losses.
On-Chain Metrics Tell a Different Story
Despite bearish price action, Santiment data paints a more nuanced picture. Network growth and daily active addresses have stayed steady since late July, signaling that while ONDO is not rapidly expanding, it is also not losing ground—an encouraging outcome during a volatile market phase.
Similarly, the age consumed metric—which measures movements of long-dormant tokens—remains quiet. This suggests that large sell-offs from previously inactive wallets have not materialized, reducing the risk of a sudden supply shock.
Wallet Distribution Shows Accumulation
While wallets holding 1M–100M ONDO have slightly decreased in recent weeks, smaller wallets holding up to 1M ONDO have been steadily accumulating. This shift indicates that retail participants may see ONDO as undervalued at current levels.
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The Spent Output Profit Ratio (SOPR) further reinforces this view. At 0.98, it shows that most holders are selling at a loss, a typical sign of undervaluation. SOPR has hovered between 0.9 and 1 since late July, apart from a brief spike in August, suggesting that long-term buyers may be positioning for future gains.
Risk-Reward Balance for Traders
The conflicting signals highlight ONDO’s precarious position. The bearish market structure and negative CMF suggest near-term risks of deeper price losses. At the same time, steady network activity, accumulation by smaller wallets, and low SOPR readings hint at undervaluation and a possible opportunity for long-term investors.
ONDO’s outlook remains mixed. Technically, the token risks a breakdown below $0.87, but its on-chain health and undervaluation metrics provide a counterweight to the bearish narrative. For traders, the setup underscores the importance of balancing short-term risks with long-term potential.
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
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