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Ondo (ONDO) made headlines on Wednesday after recording a sharp 19.8% rally, accompanied by above-average trading volume. This surge marked a breakout from a descending channel pattern that had persisted for the past two months — a move that typically signals a bullish reversal. Despite the breakout, however, technical indicators suggest that ONDO’s market structure remains tilted toward the bears.
On the 1-day chart, ONDO still faces significant resistance at the 78.6% Fibonacci retracement level near $0.915. This level marks a critical lower high that must be breached to confirm a true bullish shift. Adding to the uncertainty, the On-Balance Volume (OBV) has not surpassed its late March highs, suggesting that buying pressure may not yet be strong enough to sustain the uptrend. The RSI stands at a neutral 50, hinting at a potential momentum pivot but offering no clear direction.
Yet, bullish signals are emerging beneath the surface.
According to IntoTheBlock’s “In/Out of the Money Around Price” metric, ONDO has strong support zones at $0.815 and $0.791—levels just above the former channel resistance. A retest of these areas could provide an attractive entry point for bullish traders.
On-chain activity further supports a cautious optimism. Daily active addresses, which had been declining since mid-March, have begun to rise again, indicating renewed user interest. Meanwhile, the 90-day Mean Coin Age (MCA) has been trending upward since January, a classic sign of long-term accumulation. The absence of spikes in dormant circulation adds to this narrative, suggesting that holders are not offloading their assets.
The 90-day MVRV ratio remains in negative territory, meaning many short- and medium-term holders are still underwater — another potential signal of accumulation by more patient investors.
While ONDO’s breakout and on-chain trends offer promise, the broader bearish market conditions warrant caution. A successful retest of support levels could provide bulls with a more solid foundation — but until the $0.915 resistance is broken, skepticism may prevail.
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) Faces Resistance After 5% Rebound
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
