Ondo Finance (ONDO) Brief Surge and Subsequent Correction

Ondo Finance (ONDO) briefly surged almost 20% yesterday but reversed those gains within 24 hours. Despite this pullback, ONDO remains a significant player in the real-world asset (RWA) sector.

Technical Indicators and Market Sentiment

Technical indicators show momentum is slowing, while whale activity has declined for the first time in over two weeks. The future of ONDO’s price movement hinges on market sentiment and developments regarding its inclusion in the reserve.

ONDO RSI Is Going Down After Reaching Its Highest Levels In 3 Months

ONDO’s momentum pushed its Relative Strength Index (RSI) to 76.1 before it cooled off to 54.8. The RSI is a momentum oscillator measuring price movement speed and magnitude on a scale from 0 to 100. Readings above 70 indicate overbought conditions, potentially leading to a pullback, while readings below 30 suggest oversold conditions and a possible rebound. ONDO’s recent RSI crossing above 70 signaled strong bullish momentum, which was followed by a retracement. With the current RSI at 54.8, it indicates a slowdown in buying pressure and possible consolidation.

If the RSI stabilizes above 50, ONDO may maintain its bullish structure and attempt another upward move. Conversely, if it declines toward 40 or lower, it could suggest weakening momentum, increasing downside risk.

The Number Of ONDO Whales Dropped For The First Time Since Mid-February

The number of ONDO whales, wallets holding between 1 million and 10 million ONDO, had increased from 203 to 221 by March 1. Recently, however, this trend reversed as the whale count dropped to 214. Tracking whale activity is essential, as large holders can significantly influence price movements through buying or selling decisions.

A rise in whale numbers usually indicates accumulation, while a decline signals distribution and potential selling pressure. Despite the recent drop, the number of whales remains high compared to previous months, suggesting overall confidence in the asset.

However, if the decline continues, ONDO could face increased selling pressure and further corrections. Conversely, if whale numbers stabilize or rise again, it could indicate renewed accumulation and a potential price rebound.

ONDO Falls Below $1

The market rally pushed ONDO’s price close to $1.20 yesterday before corrections began, as traders started taking profits. ONDO’s short-term price movements will depend on whether the current pullback intensifies or stabilizes. If the correction continues, it may test support around $0.95, with the potential for further declines to $0.90 or $0.88. If it drops below $0.80, it would mark a significant low since November 2024.

Should bullish sentiment return, ONDO could regain momentum, especially if the US adopts a more crypto-friendly stance on RWAs or if ONDO is included in the US strategic crypto reserve. In that case, it could break through resistance levels at $1.26 and $1.44, potentially rallying toward $1.66.