The funding rate of Ondo [ONDO] has dropped significantly to more than -60%, presenting a unique opportunity where traders are being rewarded by exchanges to take long positions. This situation can be interpreted as an indication of increased short interest, which often precedes significant price movements when bullish momentum gains strength.
Currently, ONDO is being traded at $1.22, showing a 3.63% increase in value over the past 24 hours. Consequently, one might wonder if this is the moment when ONDO starts its upward journey, delivering substantial profits to its investors?
ONDO’s price behavior suggests a potential breakthrough
Upon scrutinizing ONDO’s price movements, it becomes evident that the cryptocurrency has been hovering around the $1.22 mark, slightly below a descending trendline that has been limiting its gains since December. This particular level holds great significance, as breaching it could open the path for an advance towards the $1.60 resistance barrier.
Moreover, there are indications that ONDO might be forming a higher low at the $1.19 support level, implying a gradual increase in buying interest. Should the bulls manage to push ONDO above the trendline, it could trigger an 80% surge in its value.
Is a market reversal imminent based on the MVRV ratio?
The MVRV ratio of long/short disparity currently stands at 35.18%, indicating that short-term holders are in a profitable position. Historically, such elevated readings sometimes precede corrections as investors seek to capitalize on their gains.
Nevertheless, this metric also suggests that ONDO’s price is facing downward pressure from profit-taking activities. Consequently, the timing of a potential reversal hinges on whether buyers can sustain their current momentum.
Increased transaction volumes and growing institutional interest
In the last 24 hours, ONDO has seen a spike in large transactions amounting to 182.2 million, with the sentiment turning 1.35% bullish. This uptick in activity indicates a growing interest, especially considering that a 7-day high of 695.18 million ONDO was recently recorded.
Hence, this accumulation of tokens may suggest that major players are gearing up for significant maneuvers. The question remains: will this increasing liquidity translate into a continuous price uptrend?
Technical indicators hint at a potential shift in momentum
Currently, the Parabolic SAR indicator is positioned below ONDO’s price, signaling a movement towards a bullish trend. Moreover, the RSI stands at 42.63, slightly above the oversold region, indicating that ONDO might be undervalued.
When viewed collectively, these indicators suggest a likely price reversal if the buying pressure continues to grow. However, breaking through crucial resistance levels is crucial for confirming a bullish trend.
Price DAA deviation raises uncertainties
The divergence between ONDO’s price and daily active addresses is currently at 65.66%, highlighting a mismatch between network activity and price movements.
While this discrepancy could indicate an overextended situation, it also hints at the potential for renewed activity if the trend shifts. Furthermore, sustained buying pressure could help alleviate this disparity, propelling ONDO towards its next bullish phase.
Is ONDO on the verge of a breakout opportunity?
Considering the metrics at the present moment and the technical signals, ONDO seems to be primed for a breakout in the near term. The positive momentum stemming from the funding rate, increased transaction volumes, and improving technical aspects all point towards this likelihood.
If ONDO manages to surpass the $1.60 resistance level, it could trigger a substantial rally. Therefore, the conditions seem favorable for ONDO to potentially break out, provided that the buying pressure remains robust.