ONDO Price Drops Over 30% from All-Time High Amid Analyst Concerns
Ondo Finance (ONDO) has experienced a price decline of over 30% from its all-time high of $2.14. Despite this downturn, analysts express optimism regarding ONDO's recovery potential due to its previous strong performance. As a top-performing altcoin, ONDO continues to attract investor interest, leading to speculation about future price movements.
Analyst Ali Martinez provided a technical analysis indicating that ONDO might be forming a head-and-shoulders pattern on its price chart, suggesting the possibility of further corrections. This bearish signal could result in increased selling pressure if confirmed.
The upcoming days are critical for Ondo Finance as it navigates these challenges. Investors will monitor whether the token can counteract bearish signals and regain bullish momentum or if the predicted pattern will lead to additional declines. The current market sentiment and technical indicators present conflicting signals regarding ONDO’s short-term trajectory.
ONDO Testing Crucial Demand
After a significant correction, Ondo Finance is testing crucial demand levels at around $1.50, which serves as a pivotal support level following its previous all-time high. Holding above this level could lead to a resurgence in bullish momentum.
Ali Martinez raised concerns about the formation of a bearish head-and-shoulders pattern, which, if confirmed, typically indicates a trend reversal and increased selling pressure.
A decisive close below the $1.48 mark could initiate a steep 30% correction, potentially driving ONDO’s price down to approximately $1.05. This scenario would be detrimental for both the token and its investors.
To negate this bearish outlook, ONDO must reclaim the $1.86 level as support, signaling strength and restoring confidence in its bullish potential. Until then, the market remains at a critical juncture with traders closely observing price action for indications of ONDO’s next direction.
Technical Analysis: What To Expect
Currently trading at $1.49, ONDO has successfully tested the critical $1.46 support level, which reflects strong buying interest. While the token appears stable, broader market conditions may still influence its trajectory.
The resilience at $1.46 suggests ONDO may be establishing a foundation for recovery. However, a market-wide retrace could exert additional pressure, potentially leading to lower prices and retesting of critical demand levels. Investors are watching key technical levels for signs of a bullish rebound.
For ONDO to regain upward momentum, reclaiming the $1.70 level in the coming days is vital. A decisive move above this threshold would indicate renewed strength and set the stage for a bullish recovery, possibly retesting previous highs. Until then, ONDO remains in a precarious position, with traders monitoring broader market sentiment and the asset’s ability to maintain current support levels. The forthcoming steps will be crucial in determining whether ONDO can resume its uptrend or face ongoing consolidation.
Featured image from Dall-E, chart from TradingView