Increasing Interest from Major Players
Despite a slight decrease of 0.46% last week, ONDO [ONDO] has now rebounded, registering a 3.64% gain on the daily chart. This upswing has propelled its overall monthly growth to an impressive 49.42%, highlighting robust bullish momentum.
With whales steadily accumulating and a tightening supply due to reduced activity by spot traders, upward pressure on ONDO’s price is anticipated.
Analysts suggest that derivative sellers, who previously profited from bearish trends, could face mounting losses if the current bullish sentiment persists.
According to an analyst named Jacky on Twitter, major cryptocurrency platforms have been actively increasing their ONDO holdings.
For example, Upbit, South Korea’s primary crypto exchange, has consistently grown its position over the past five months, now owning 1.86% of ONDO’s total supply.
On this matter, Jacky noted:
“[Upbit has increased] from 50 million $ONDO to 185 million ONDO, representing 1.86% of the total supply.”
Similarly, Binance, as highlighted by ANB Crypto, has been adding to its ONDO holdings, moving from around 594,000 ONDO to 631,000 ONDO within a short span.
Wintermute, a notable market maker in the crypto space, has also joined the accumulation trend alongside other major players.
Typically, when whales start accumulating, it signals their anticipation of a potential rally, which often drives up the asset’s value, benefiting ONDO holders.
Impending Supply Constraints
Spot traders are reducing ONDO availability on exchanges, evidenced by the negative Exchange Netflow for the token, as reported by Coinglass.
This decline suggests that more ONDO is being withdrawn than deposited, leading to a scarcity of the asset on trading platforms and increasing the likelihood of a supply crunch.
Recent data shows that approximately $4.10 million worth of ONDO has been transferred to private wallets in the past week, indicating a strong commitment to long-term holding.
Should this trend persist, ONDO’s price surge may gather momentum as decreasing exchange supply meets rising demand.
Potential Losses for Short Derivative Traders
In the past 24 hours, around $297,180 worth of long positions in ONDO were liquidated as market sentiment briefly turned bearish.
This coincides with a decline in Open Interest—a gauge of market sentiment based on the number of active outstanding derivative contracts—and a rise in unresolved short contracts.
Given the prevailing bullish momentum fueled by whales and spot traders, and ONDO’s 3.46% daily increase, short derivative traders may face significant losses if the trend continues.