Ondo Finance (ONDO) Gains 14% Amid Market Hurdles – Will Bulls Push Past $1?

• Ondo Finance (ONDO) exhibited a 14% gain, but met resistance near the $1 mark.
• Despite these gains, the broader market sentiment for ONDO remained cautious.
• Notably, Ondo’s integration with the Pyth Network substantially boosted its momentum.

Ondo Finance encounters a barrier after a 14% gain, raising questions about its future trajectory.

Ondo’s Recent Gains and Immediate Resistance

Ondo Finance, a prominent player in the tokenized securities market, recently followed Bitcoin’s upward trend, posting over 14% gains since July 8. The company also saw a notable 4% increase on July 10, coinciding with its integration with the Pyth Network. This partnership allows Ondo’s USDY/USD price feed to be featured across more than 60 blockchains, further enhancing its market reach and credibility.

Technical Indicators and Market Sentiment

Despite these gains, ONDO faced an immediate resistance level near $1. The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) indicators were in neutral territory at the time of writing. This neutrality suggested an improvement in buying pressure and capital inflows, but not enough to drive a significant upward momentum. The 12-hour chart also showed that ONDO had not yet secured a close above the $1 mark, indicating that the market structure hadn’t shifted to a bullish trend.

Potential Future Movements for ONDO

If ONDO fails to close above $1, it could potentially revisit the $0.9 demand zone, especially if Bitcoin struggles to reclaim the $60K level in the short term. Conversely, closing above $1 could provide ONDO bulls the leverage to aim for a 10% increase, targeting the range-high of the descending triangle pattern.

Market Sentiment and User Activity

Analyses from Santiment indicated a weak sentiment towards ONDO, as revealed by the negative Weighted Sentiment data. This sentiment was further corroborated by a significant drop in daily active addresses since July 5, suggesting fewer transactions and lower user engagement. However, a bullish trend in Bitcoin could potentially invalidate this negative outlook, providing a more optimistic scenario for ONDO.

Conclusion

In summary, while Ondo Finance has shown impressive short-term gains and strategic partnerships that bolster its market position, it faces significant resistance and weak sentiment. The next few trading sessions will be crucial for determining whether ONDO can break through its current barriers or revisit previous support levels. Investors should closely monitor Bitcoin’s performance and market sentiment indicators to gauge the future trajectory of ONDO.