ONDO Analysis

ONDO declined by 9.55% over the past 24 hours.
With strong bearish sentiments, an analyst foresees a drop to $1.05.

Since hitting a local high of $2.1 a week ago, Ondo Finance (ONDO) has struggled to maintain upward momentum.

Over this period, the altcoin has declined to $1.47. As of this writing, ONDO was trading at $1.51, marking a 9.55% decline over the past 24 hours, and a 19.70% drop on weekly charts.

The recent market condition has left the crypto community predicting a further dip. Popular crypto analyst Ali Martinez has suggested a potential decline to $1.05, citing the head and shoulders pattern.

Market Sentiment

In his analysis, Martinez posited that ONDO was forming a head and shoulders pattern at press time. Thus, if the altcoin ends below $1.48, it could lead to a 30% price correction to around $1.05.

For context, the head and shoulders pattern is a bearish reversal pattern indicating a potential price decline after an upward movement. A price drop below the neckline shows a potential drop equal to the height of the head from the neckline. Therefore, ONDO must reclaim $1.86 as support to invalidate the bearish outlook; failing to do so will lead to further declines.

ONDO: A Look at the Charts

Though the analysis provided above offered a bearish outlook, it’s essential to consider what other market indicators suggest. According to AMBCrypto’s analysis, ONDO is currently in a corrective phase with strong bearish sentiments.

The bearish trend is evidenced by the rising exchange-to-flow balance, indicating that more traders are transferring assets to exchanges, either to sell or preparing to sell. This trend is more pronounced among large holders, with IntoTheBlock reporting a netflow decline of large holders to -3.52 million over the past week. This indicates more outflows from whales compared to inflows.

Additionally, ONDO’s NVT ratio with transaction volume has surged over the past days, raising concerns of overvaluation. This indicates less network participation, marked by fewer transactions, fewer active addresses, and overall lower network usage. The altcoin’s stock-to-flow ratio has also signaled oversupply, further supporting previous observations of increased inflow to exchanges.

With ONDO being over-supplied, it risks further decline as it creates selling pressure, with potential support around $1.04 if current market conditions persist. If the trend reverses, the altcoin may reclaim $1.7 in the short term.