Ondo (ONDO) has faced persistent downward pressure, with the token currently priced at $0.9819 after a sharp decline from its February 1 value of $1.56. Market indicators suggest that ONDO could drop below $0.8 as resistance levels and bearish momentum continue to weigh on its price action.
Sell-Wall Resistance Limits ONDO’s Upside Potential
ONDO faces significant resistance between $1.10 and $1.27, as per the In/Out of Money Around Price (IOMAP) analysis by IntoTheBlock.
The data shows a high concentration of unrealized losses within these price levels, which could lead to intense selling pressure as traders attempt to exit positions.
- $1.10–$1.13 Resistance Zone: Over 4,000 addresses hold 51 million ONDO tokens at a loss.
- $1.20–$1.23 Resistance Zone: Approximately 4,600 addresses are holding 162 million tokens in unrealized losses.
As ONDO’s price approaches these resistance zones, profit-taking activity may intensify, preventing a sustained rally.
Technical Indicators Signal Further Downside
From a technical perspective, ONDO’s daily chart reflects a bearish outlook, with key indicators reinforcing the likelihood of a continued downtrend.
- Relative Strength Index (RSI): ONDO is approaching the oversold region (below 30), indicating weakened momentum but no immediate sign of a recovery.
- Bull Bear Power (BBP): The indicator remains in negative territory, signaling that bears are in control of the market.
With these factors in play, ONDO’s price could break below the critical $1 support level.
Potential Price Scenarios for ONDO
If ONDO continues its downward trajectory, the token could decline to key Fibonacci retracement levels:
- First Support: $0.89 – If ONDO fails to find buying support, this level may serve as the next critical test.
- Second Support: $0.50 – A prolonged bearish trend could push the price even lower if buyers remain inactive.
However, if ONDO manages to bounce off support at $0.89 or holds above $1, it could trigger a rebound towards $1.52 in the near term.
ONDO remains under significant selling pressure, with strong resistance levels limiting potential upside. While a break below $1 appears likely, a potential rebound from support zones cannot be ruled out. Traders should closely monitor key price levels and market sentiment for further price direction.
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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