ONDO Finance [ONDO] has managed to maintain a positive outlook, with a notable 46.43% increase in value over the past month and a 1.69% rise in the last 24 hours.
Despite these gains, there are indications of a potential reversal in the current trend due to a disparity between price increments and declining interest.
CryptoCrypto has provided an in-depth analysis of ONDO’s performance and what investors might expect in the future.
Binance’s Acquisition of ONDO Tokens
Binance, the leading cryptocurrency exchange globally, recently acquired ONDO tokens worth $596,415.56, which is equivalent to 174.22 ETH, within the last five days.
These transactions were carried out through Binance’s hot and cold wallets in two separate transfers, increasing their total ONDO holdings to 571,827 tokens.
Such significant purchases often signify a rising interest from institutional investors, indicating that major players may be gearing up for a potential market upturn.
However, upon closer examination, a divergence is noticeable: while institutions are accumulating assets, derivative traders are actively selling, signaling a divergence in market sentiment.
Contrasting Trends Amid ONDO Accumulation
Presently, a bearish sentiment is emerging, deviating from the previously bullish trend seen with large-scale asset accumulation.
The OI-Weighted Funding Rate, which adjusts the Funding Rate based on Open Interest (OI), offers a clearer insight into market sentiment.
A positive rate indicates a bullish market dominated by long positions, while a negative rate signifies a bearish market led by short positions.
Currently, ONDO’s Funding Rate is on a steady decline, entering the negative territory with a reading of 0.0251%, reflecting an increasing bearish trend.
Data on long liquidations suggests an unfavorable market environment for long position holders aligning with the strategies of larger investors.
A total of $538,610 worth of long positions has been liquidated forcefully, hinting that the downward momentum could persist, pushing ONDO’s price lower.
Rise in Short Contracts
As long positions face liquidation and the market sentiment turns bearish, there has been a noticeable uptick in short contracts, as observed by CryptoCrypto.
Coinglass data indicates that the current long-to-short ratio is below 1 at 0.8734, indicating a higher number of short contracts, which indicates a market preference towards short positions.
Continued increase in short contracts may drive down ONDO’s value further, delaying any potential market rally and pushing the asset away from its current position.