ONDO Shows Signs of Bullish Momentum with Golden Cross Formation and Possible Price Recovery Toward $1.20

• Ondo Finance (ONDO) is experiencing a resurgence, rising over 4% in recent trading amid a notable rotation of investors from the collapsed OM token.

• A combination of technical indicators, including a newly formed golden cross, signals a potential bullish trend as market sentiment shifts positively.

• According to TradingView, “The improving metrics suggest a significant recovery attempt is in play for ONDO,” reflecting a renewed interest among investors.

Ondo Finance (ONDO) rises over 4% amid market rotation from OM token, showcasing bullish momentum with key technical indicators suggesting further gains.

ONDO Forms Bullish Technical Patterns Amid Market Shifts

With a decisive golden cross on the exponential moving average (EMA) lines, ONDO’s recent price movement is indicative of potential upside momentum. This crossover, where the short-term moving average surpasses the long-term average, often signifies the onset of a bullish trend, enticing more buyers into the market.

As ONDO trades above the critical resistance level of $0.956, further advances towards the psychologically significant $1.20 mark could be on the horizon if current momentum is sustained. The market’s current focus seems to be rapidly shifting from weaker tokens to more resilient projects like ONDO, providing a favorable atmosphere for increased price action.

Analyzing Buyer Control with DMI Indicators

The Directional Movement Index (DMI) for ONDO reveals interesting dynamics: while the +DI rose to 25.17, the -DI has declined to 14.36. This divergence indicates that buyers are regaining control, despite a recent decline in the Average Directional Index (ADX), which dropped from 36 to 28. A declining ADX suggests the strength of the prevailing trend is weakening, highlighting a potential for consolidation as traders strategize their next steps.

ONDO DMI. Source: TradingView.

While the current readings indicate accumulating bullish pressure, the pronounced decline in ADX may suggest that investors should proceed with caution, as the trend could be vulnerable to rapid reversals if buying momentum falters.

Chaikin Money Flow Indicates Shifting Market Sentiment

Similarly, ONDO’s Chaikin Money Flow (CMF) has made a notable recovery, currently at -0.06, rebounding from a recent low of -0.17. This indicator assists traders in assessing the overall buying and selling pressure in a market, combining both price action and volume data.

ONDO CMF. Source: TradingView.

Despite remaining slightly negative, the upward trajectory of the CMF suggests diminishing selling pressure, which may hint at growing accumulation as investors regain confidence in ONDO. This shift in sentiment could encourage further buying, especially following the negative fallout from the MANTRA OM token collapse.

Potential Price Testing Ahead for ONDO

In the coming days, the performance of ONDO’s price will be closely watched. Given the recent technical patterns and positive sentiment, breaking resistance at $0.956 may open the path for a rally towards $1.20.

However, should ONDO fail to uphold this momentum and drop below the crucial support level of $0.82, the risk of heightened selling pressure increases. Such a decline could trigger further corrections, possibly testing lower levels at $0.73 and even extending down to $0.66 if selling persists.

Conclusion

In summary, Ondo Finance is demonstrating a renewed bullish outlook characterized by key technical signals and changing market dynamics. As the crypto landscape evolves, ONDO’s ability to break through resistance levels and sustain buyer engagement will be pivotal for its future trajectory. Investors should monitor these developments closely while remaining mindful of potential volatility.