ONDO token has recently experienced a breakout from a falling wedge pattern on the daily chart, pushing its price up by 4.31% to reach $0.7122. This breakout could indicate a shift from a downtrend to an uptrend, possibly signaling the start of a sustained uptick in ONDO’s value.
The main question now is whether this breakout will lead to further price increases for ONDO. Will it pave the way for more significant gains in the days ahead?
Analysis of Technical Indicators – RSI and MACD Presenting Mixed Signals
Looking at the technical indicators, there seems to be a mixed outlook for ONDO. The Relative Strength Index (RSI) is currently sitting at 62.25, suggesting that the token might be nearing overbought territory. However, there is still room for potential growth shown on the chart.
At the same time, the Moving Average Convergence Divergence (MACD) is nearing a bearish crossover. While this eventuality is not immediate, once it occurs, it could trigger a period of price decline. It’s advisable for traders to exercise caution considering the broader market conditions.
On-chain Data Analysis – What Do On-Chain Signals Suggest for Investors?
On-chain metrics display a somewhat bearish sentiment. According to IntoTheBlock data, net network growth has decreased by 1.23%, indicating a decline in new participants joining the ONDO ecosystem.
Moreover, there has been a 0.03% decrease in concentration, pointing towards a lack of significant investment from major holders. Large transactions also saw a decrease of 2.90%, further supporting a more tentative approach in the market.
The “In the Money” metric remains neutral at 0.01%, implying that most investors are currently at a breakeven position. This neutrality adds to the uncertainty surrounding ONDO’s future movements.
ONDO Liquidation and Long/Short Ratios – Insights into Trader Sentiment
When examining the liquidation data, it shows that $12.08k worth of short positions were liquidated in contrast to $3.31k in long positions. This imbalance suggests a slight selling pressure bias, based on Coinglass information.
Despite this, the long/short ratio stands at 0.99, with short positions at 50.25% and long positions at 49.75%. This equilibrium indicates that traders are evenly split on the future direction of ONDO, whether it will rise further or not.
Future Prospects for ONDO
To conclude, the breakout from the falling wedge pattern has ignited hopes for a bullish rally for ONDO. Nevertheless, conflicting signals from technical and on-chain analyses urge traders to exercise caution.
While there is a potential for sustained upward momentum, the current market sentiment is divided. It is advisable for investors to closely monitor key indicators before making any significant investment decisions.