Ondo (ONDO) has seen a modest rebound, rising from a low of $0.74 to a current price of $0.81, reflecting a 5% gain in the last 24 hours. This uptick aligns with the average movements of altcoins in the market, but technical indicators suggest that ONDO may face significant challenges in sustaining its upward momentum.
One of the key hurdles for ONDO is its failure to break through a descending trendline. Although the price briefly climbed above $0.80, it remains below this critical resistance level, which has previously stalled bullish momentum. Last week, the trendline proved to be a barrier for further gains, and the situation hasn’t changed in the short term.
The Chaikin Money Flow (CMF) also signals waning buying pressure. After briefly moving above the signal line, the CMF has now dipped to -0.05, indicating that market participants are losing confidence in the token’s upward movement. If this trend continues, ONDO could see sideways movement and may risk dropping below the horizontal support at $0.78. Additionally, the Moving Average Convergence Divergence (MACD) suggests a low probability of a bullish reversal, as the Exponential Moving Averages (EMAs) are converging, signaling indecision between buyers and sellers.
In the shorter term, ONDO’s price could continue to fluctuate between the $0.74 and $0.87 range. The 4-hour chart paints a similarly bearish picture, with the price trapped within a descending channel. The Supertrend indicator also supports this outlook, with the red line positioned above ONDO’s price, signaling resistance at $0.82.
The Money Flow Index (MFI), which is below the neutral 50.00 line, further confirms that buying pressure is insufficient to propel ONDO higher. If the MFI remains below this threshold, a pullback to $0.73 could be likely. However, if the MFI breaks the midpoint and buying momentum picks up, ONDO may break through resistance and rise towards the $0.95 mark, near the 0.236 Fibonacci level, with potential for further gains towards $1.09.
In conclusion, while ONDO has seen a short-term recovery, the token faces significant technical challenges that could limit its upward movement in the near future.
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.
Also Read: Ondo (ONDO) Price Struggles: Will the Token Break Out or Drop Further?
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