Ondo (ONDO), the native token of ONDO Finance, is currently consolidating near major technical levels, as market analyst Ali Martinez anticipates a possible breakout from its established price range. Since mid-last month, ONDO has been undergoing a significant correction, indicating the altcoin is currently in the distribution phase. Ali spotted key resistance levels for the asset and shared insightful analysis on it.
ONDO Facing Key Resistance Wall at $1.15
The analyst identified the $1.15 threshold on the weekly timeframe as the peak of an almost six-week horizontal channel, as indicated in the chart above. According to Ali, the asset could experience an uptrend momentum that may enable it to shoot above this key resistance level. The analyst told his 152.9k X followers that ONDO can break above $1.15, which could imply the asset is on its way to a major market rally. This climb would mean that buyers, who have been consolidating since July 17th to present, are eventually breaking out of their stagnant region.
As per Ali’s technical analysis, Ondo is approaching a significant resistance zone (the $1.15 mark), which could set the foundation for a robust price rise up to $2.4. As per the analyst, the ONDO price chart on a weekly trading chart is moving within a horizontal parallel channel – a technical analysis pattern that signals an upcoming accumulation period when prices move within a range confined by two parallel trend lines over time. The channel’s upper line is a strong resistance zone, while the lower line is a strong support level. According to fundamental concepts, when an asset moves out of a parallel channel, an upsurge movement is likely to emerge, with a technical target aiming towards the $1.5 range and even higher.
ONDO Price: Institutional Momentum
ONDO has been struggling lately, marked by its ongoing consolidation phase. The asset’s value currently stands at $0.9074, down over the past 2.7% over the past month. The formation of the parallel channel is an indicator that funds have started entering the market. These inflows signal a shift from bearishness to positive sentiment and renewed demand for ONDO. The rally is being catalysed by news associated with potential ONDO ETFs and surging institutional demand.
ONDO price is currently up 2.0% over the past week, showing stability, decreasing sell-side pressure, and the token’s increasing accumulation. This trend suggests rising investor enthusiasm in the asset’s long-term potential. Institutional demand for ONDO remains high due to its renowned expertise in tokenized finance and RWAs. Ondo Finance’s cutting-edge products, like tokenized U.S treasuries, bonds, and money market funds, have drawn interest from prominent players in TradFi. Recent ETF-related news also enhanced ONDO’s attractiveness, positioning it as a crucial asset in the growing DeFi environment. Last month, exchange-traded fund provider 21Shares filed an application to the US SEC for an ONDO ETF.
