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As ONDO sees significant institutional interest, market participants remain divided amidst potential bearish signals.
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Despite the uptick in price, recent selling activity in the market raises concerns about a possible reversal trend.
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According to COINOTAG, “The market is currently caught in a tug-of-war between accumulating institutions and short-sellers.”
Discover the interplay between accumulating interest and market sentiment affecting Ondo Finance [ONDO] in this detailed analysis.
Binance accumulates ONDO
Binance, the world’s largest cryptocurrency exchange by market capitalization, has recently accumulated $596,415.56 worth of ONDO, equivalent to 174.22 ETH, over the past five days.
These transactions were conducted through Binance’s hot and cold wallets in two separate transfers, bringing its total ONDO holdings to 571,827 tokens.
Source: X
Such large-scale acquisitions often hint at growing institutional interest, suggesting major players may be positioning themselves for a potential rally. However, a closer look reveals a stark contrast: while institutions are accumulating, derivative traders are actively selling, signaling a potential divergence in market sentiment.
Divergence amid ONDO accumulation
At the time of writing, bearish sentiment was developing, diverging from the bullish undertone set by large-scale accumulation.
The OI-Weighted Funding Rate, which adjusts the Funding Rate by Open Interest (OI), provides a clearer view of market sentiment. A positive rate suggests a bullish market with dominant longs, while a negative rate reflects a bearish market led by shorts.
At press time, ONDO’s Funding Rate appeared to be steadily declining and has entered the negative region, with a reading of 0.0251%, signaling growing bearish pressure.
Source: Coinglass
Long liquidation data revealed that the market looked unfavorable for long traders who aligned with the accumulation trends of larger investors. A total of $538,610 worth of long positions has been forcefully liquidated, indicating that downward momentum may continue to steer ONDO’s price lower.
Increase in short contracts
With long positions being liquidated and market sentiment shifting toward bearish, COINOTAG has observed a significant increase in short contracts.
Read Ondo Finance’s [ONDO] Price Prediction 2024–2025.
According to Coinglass, the press time long-to-short ratio was below 1 at 0.8734, indicating a higher number of short contracts. This suggested a market tilt in favor of shorts.
If the trend of opening more short contracts continues, it could further drive down ONDO’s price, delaying any potential rally and pushing the asset further from its current level.
Conclusion
In summary, while Binance’s accumulation of ONDO signifies potential institutional interest, the contrasting market sentiment indicated by rising short contracts and declining funding rates suggests cautious anticipation among traders. The ongoing dynamics could lead to critical shifts in ONDO’s price trajectory in the near future, emphasizing the importance of monitoring both institutional movements and retail trader behaviors.
