ONDO Faces Continued Downside Risks Amidst Whale Behavior and Fragile Market Sentiment

• ONDO continues to experience significant downward pressure, with a 5% drop in the last 24 hours and a 19% decline over the past month, indicating troubling bearish trends.

• Even though the RSI has shown slight recovery, it remains close to oversold levels, reflecting a market sentiment that remains fragile and precarious.

• As whale activity slows down, concerns escalate regarding ONDO’s ability to maintain critical support levels, possibly fueling further declines.

ONDO faces continuous downward pressure with declining whale activity and bearish trends. Is a major support level about to be tested?

ONDO’s Recent Technical Indicators Point Towards Continuing Downtrend

ONDO has shown notable indicators of bearish momentum as its market capitalization stagnates around $2.5 billion, trailing competitors like Chainlink and Mantra. The recent price action has revealed weaknesses in demand and technical formations suggest further price declines may be on the horizon.

This sustained decline has been characterized by the inability to capitalize on momentary thrusts upward, which typically indicates lingering market weakness and a lack of confident buyers.

Monitoring the Recovery of the RSI

The current Relative Strength Index (RSI) for ONDO, after recovering to 34 from an earlier level of 27.5, illustrates moments of potential, although it teeters on the edge of continuing bearish territory. This indicator tracks momentum and suggests potential for reversal when readings surpass 40 or 50. Nevertheless, the RSIs sharp movements merely underscore the volatile sentiment surrounding ONDO.

The fragility of the recovery underscores the crucial psychological barriers traders must navigate; a fallback to below 30 could indicate renewed selling, which would likely amplify bearish trends.

ONDO RSI. Source: TradingView.

Recent Whale Activity Suggests Bearish Sentiment

The dynamics of whale activity can significantly impact market sentiment. Currently, the number of ONDO whales fluctuated somewhat, signaling reduced accumulation. The drop from 195 addresses to 191 within a matter of days suggests larger holders are inclined to take profits or diminish their positions. Such moves generally precede substantial price corrections.

As ONDO whales scale back their purchases, there’s potential for a demoralizing effect on the overall market, as their activities often set the tone for smaller investors, hinting at caution in approaching ONDO’s future.

Addresses holding between 1 million and 10 million ONDO. Source: Santiment.

Potential Price Outlook: Is $0.70 Under Threat?

With ONDO’s Exponential Moving Average (EMA) indicating a bearish alignment, we could witness testing of vital support at $0.73. A breach below this key level would be alarming, possibly pushing ONDO beneath $0.70 for the first time since November 2024, opening doors to dire prospects.

Market participants should remain vigilant, as ONDO’s position relative to other Real World Asset (RWA) coins like Mantra poses added pressure, especially when performance does not match competitors.

ONDO Price Analysis. Source: TradingView.

Looking for Signs of a Trend Reversal

Should ONDO break through the $0.82 resistance threshold, it could signal a broader recovery with targets set at $0.90 and $0.95. Furthermore, renewed interest and momentum within the RWA sector can provide a much-needed uplift to ONDO, reigniting its climb above the $1 mark, and ultimately towards subsequent resistances at $1.23.

Conclusion

ONDO’s precarious position continues to weigh on investor sentiment, battling potential drops below significant support levels. Stakeholders must carefully monitor market indicators, particularly whale behaviors and the RSI trends, as these will provide crucial insights into the potential path forward for ONDO amidst fluctuating market dynamics.