- ONDO confirmed a falling wedge breakout, rising 4.31% to $0.7122.
- Market sentiment appeared cautious as data on the chain showed mixed signals
Ondo [ONDO] confirmed a break with a falling wedge on the daily chart, which rose 4.31% to reach $0.7122 at the time of writing. This pattern can be interpreted as a sign of a possible shift from a downtrend to an uptrend – a sign that ONDO could see a sustained rally.
The key question is whether this breakout will continue to drive ONDO’s price higher. Could this set the stage for further gains in the coming days?
Source: Captain Faibik/X
Technical analysis breakdown – RSI and MACD show mixed signals
The altcoin’s technical indicators gave a mixed outlook. ONDO’s Relative Strength Index (RSI) recorded 62.25, indicating that the asset may be approaching an overbought status. However, there still seemed to be room for additional growth on the chart.
The Moving Average Convergence Divergence (MACD) was approaching a bearish crossover at the time of writing. While the chart suggested there is still time before that happens, a period of price decline could occur in the market once it does. Therefore, traders should remain cautious given the larger market conditions.
Source: TradingView
Signals in the chain – Can investors expect more profits?
On-chain statistics showed slightly bearish sentiment. For example, according to IntoTheBlock, net network growth fell by 1.23% – an indication that fewer participants are joining the ONDO ecosystem.
Moreover, concentration fell by 0.03%, indicating a lack of significant investment by large owners. Large transactions also fell by 2.90%, which seemed to support the idea of a more cautious approach.
However, the ‘In the Money’ measure remained neutral at 0.01%, showing that most investors are currently at a breakeven point. Simply put, it seemed to contribute to the uncertainty surrounding ONDO’s future steps.
Source: IntoTheBlock
ONDO Liquidation and Long/Short Ratios: What Do the Traders Think?
Finally, the liquidation charts showed that $12.08k of short positions were liquidated, compared to $3.31k of long positions. This underlined a slight bias towards selling pressure, Coinglass said facts.
However, the long/short ratio was quite balanced at 0.99, with 50.25% short and 49.75% long positions. Therefore, traders seemed evenly divided on whether ONDO will continue to rise or not.
Source: Coinglass
Read Ondo’s [ONDO] Price forecast 2024–2025
What is the future for ONDO?
In short, ONDO’s bearish wedge breakout has fueled hopes for a bullish rally. However, conflicting technical and on-chain signals suggest that traders should remain cautious.
While there is potential for continued upside, the current market is evenly split. And investors should keep a close eye on key indicators before making major decisions.