ONDO Price Struggles Below $1: Will Consolidation or a Breakout Follow?

Getting your Trinity Audio player ready...

Since surpassing the $2 mark in December, Ondo (ONDO) has been trapped within a descending channel, shedding over 60% from its all-time high. The token’s price remains below $1, signaling continued weakness, with technical indicators pointing to a prolonged period of consolidation.

ONDO’s Bearish Trend Continues

On the daily chart, ONDO has been on a downtrend since hitting a swing high of $2.18, reaching a swing low of $0.78 on March 11. Despite minor rebounds, the price remains within the descending channel, currently trading around $0.84.

A descending channel can indicate either bullish or bearish trends, depending on price action. A breakout above the upper trendline could signal a potential reversal and a sustained rally. However, ONDO’s price is closer to the lower trendline, suggesting continued bearish pressure.

Key Technical Indicators Confirm Weakness

The Relative Strength Index (RSI), a momentum indicator, remains below the neutral 50.00 level, further confirming bearish sentiment. Typically, an RSI above 50.00 suggests bullish momentum, but ONDO’s reading indicates a lack of strong buying interest, reinforcing the likelihood of sideways movement.

Moreover, the Moving Average Convergence Divergence (MACD) indicator has slipped into negative territory, highlighting sustained bearish momentum. The Awesome Oscillator (AO) also remains negative, despite sporadic green histogram bars, suggesting the token’s price could stay within a tight range.

ONDO Price Levels to Watch

Given the current trend, ONDO is expected to trade between $0.78 and $0.91 in the near term. If the token fails to hold support at $0.78, it could decline further to $0.52. Conversely, a break above $0.91 could push ONDO toward the next key resistance at $1.15.

Should ONDO successfully breach $1.15, a rally toward $1.82 may be on the horizon. However, without a decisive breakout, extended consolidation remains the most probable outcome for the token.

Also Read: Ondo Finance Surges Past $1B TVL—Could ONDO Hit $3.49 in March?

For investors and traders, monitoring key technical levels and market sentiment will be crucial in determining ONDO’s next 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.