On the 4-hour time frame, ONDO’s price movement has formed a head-and-shoulders pattern. The left shoulder hit around $1.85, the head at $2.09, and the right shoulder did not surpass $1.85, confirming the bearish setup.
This resulted in a break below the neckline at $1.55, signaling a possible 29% drop towards the $1.15 Fibonacci retracement level.
A continuation of the bearish trend could lead to a further 17% decrease, potentially pushing ONDO down to $1.05, in line with the 0.618 Fibonacci level. This price point might offer a favorable entry opportunity given ONDO’s strong fundamentals.
Alternatively, reclaiming $1.55 as a support level could invalidate the bearish scenario and pave the way for a recovery towards $1.85, with a potential target at the $2.09 resistance area.
Previous interactions with Fibonacci levels suggest that traders closely follow technical indicators. The outcome will heavily rely on market momentum and broader conditions, highlighting the significance of the pattern in determining ONDO’s future direction.
Insights from ONDO’s On-Chain Analysis
An analysis of ONDO’s total addresses with balances over time reveals a consistent increase, indicating a rising confidence among holders despite price volatility. This suggests an ongoing accumulation trend amid price fluctuations.
Historically, a rise in addresses with balances has often foreshadowed price stability or increases in ONDO’s value, acting as a potential support against the anticipated 17% decline.
If this trend continues, ONDO could stabilize or bounce back sooner than expected. Conversely, a sharp decline in addresses with balances might exacerbate the price drop, confirming the bearish projection.
Furthermore, fluctuations in the average holding time for ONDO transactions reflect changing investor behaviors in response to price movements. Longer holding periods have historically correlated with price stability or upward trends.
In contrast, shorter holding times, notably towards the end of 2024, coincide with price downturns, indicating increased selling pressure.
The recent pattern of decreasing holding times could indicate a higher risk of further price declines. Historical data suggests that prolonged periods of shorter holding times often precede price drops.
On the other hand, a surge in holding times may signal the potential for price stabilization or recovery, serving as a counterbalance to the projected 17% decrease.
Social Media Engagement
Despite facing a potential price decline, ONDO maintains its position as a prominent player, ranking third with 5.3k active posts and 1.1 million interactions.
The sustained social interest in ONDO, amid price uncertainties, hints at resilience and ongoing investor engagement that could mitigate or reverse the anticipated 17% price dip.
This consistent social presence may indicate underlying strength, positioning ONDO as a key player to watch in the ever-evolving cryptocurrency landscape.