The ONDO token, which serves as the native token for a decentralized finance (DeFi) platform specializing in fixed yield loans backed by yield-generating crypto-assets, is currently displaying signs of recovery following a significant price drop.
On August 5th, ONDO hit a low of $0.52. However, in the past week, the token has shown a 7% increase, with an additional 4.3% surge in the last 24 hours.
This resurgence coincides with a growing interest from both traders and analysts, hinting at a potential upward trajectory for ONDO in the coming days.
Positive Indicators for ONDO’s Future
A well-known crypto analyst, Captain Faibik, has recently shared an optimistic perspective on ONDO, suggesting that the token is gearing up for a substantial rally by the end of Q4 2024.
In a recent post on X (previously known as Twitter), Faibik highlighted a falling wedge pattern in ONDO’s price chart, recommending,
“Continue accumulating ONDO and exercise patience; the rewards will be worth it. Anticipate a new all-time high in Q4 2024.”
This forecast has piqued the interest of traders, fueling speculation about ONDO’s potential to surpass its previous price peaks.
The upcoming weeks are likely to be pivotal in determining whether ONDO will break out into a significant rally.
Assessing the Fundamentals
While technical analysis offers valuable insights, understanding ONDO’s underlying fundamentals is equally important in evaluating its prospects for growth in the market.
One pivotal metric to monitor is whale activity—transactions involving $100,000 or more. Recent data from IntoTheBlock shows a sharp decline in ONDO’s whale transactions in recent weeks.
From a peak of over 60 transactions in late August, the number has dwindled to just 12 transactions at the present moment.
This decreasing trend in high-volume trades may indicate reduced demand from major investors, potentially tempering expectations for an immediate upsurge.
In addition to whale activity, assessing Open Interest provides insights into market sentiment. Open Interest represents the total number of outstanding contracts in Futures and Options markets, serving as a barometer for trend strength.
Data from Coinglass indicates a 4.69% increase in ONDO’s Open Interest, reaching a value of $83.12 million. This uptrend suggests a growing interest in the token, hinting at traders positioning themselves for a potential price rise.
However, a contrasting viewpoint emerges. Despite the rise in Open Interest, the volume has witnessed a decline of 17.91%, dropping to $86.67 million at the time of reporting.
This discrepancy suggests a mixed market signal, indicating uncertainty or lack of conviction among traders, which could impact ONDO’s future price movements.