After failing to reclaim the $1 mark since March 7, Ondo (ONDO) faced a sharp correction, dipping below $0.80 by March 11. However, the token has since found some relief, hovering around $0.86. Despite this short-term recovery, technical indicators suggest that a major breakout remains unlikely.
ONDO’s Price Faces Bearish Pressure
On the daily chart, ONDO’s price is currently confined within a descending triangle, a bearish pattern characterized by a downward-sloping upper trendline and a horizontal support level. Historically, this setup often results in a breakdown if the price breaches the support line.
As of now, ONDO has managed to stay above this support while testing resistance around $0.94. However, a decisive breakout above this bearish formation appears improbable. One key reason is the position of the Supertrend indicator. The Supertrend helps determine market trends, signaling bullish conditions when the price moves above its green line and bearish conditions when it falls below the red line. At present, ONDO’s price remains under the Supertrend’s red line, reinforcing the likelihood of continued bearish momentum.
ONDO Price Outlook: Sideways or Further Decline?
Further analysis on the 4-hour timeframe reveals that ONDO is also trading within a falling channel, with support at $0.77 and resistance at $0.94. The Moving Average Convergence Divergence (MACD) indicator also paints a bearish picture, as its signal has turned negative. Additionally, the 12-day Exponential Moving Average (EMA) has crossed below the 26-day EMA, signaling weakening market sentiment.
If this bearish momentum persists, ONDO may struggle to break out and could drop further to $0.73. In an extreme bearish scenario, the token’s price could slide below $0.60. However, should buying pressure increase, ONDO could challenge resistance levels and potentially reclaim the $1 mark.
For now, traders should watch these key support and resistance levels closely to gauge ONDO’s next major move.
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 Finance Moves $12.2M in ONDO to Coinbase Prime – More Selling Ahead?
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