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ONDO - RWA Crypto Bounces Back Above $1: Analysis of June 20, 2024

Thu 20 Jun 2024 ▪ 5 min of reading ▪ by Family Trading Partnership
Getting informed Invest

After reaching its ATH, ONDO faced selling pressure bringing its price down to $1. Let’s examine the future prospects for ONDO together.

Logo ONDO fond rouge et bleu avec de parts et d’autres un ours rouge et un taureau bleu enragés. En haut de chacun, on peut voir la barre de pouvoir de chacun.

ONDO Price Situation

The ONDO cryptocurrency had a more than satisfactory launch. Indeed, after reaching a historical low of $0.08400, the cryptocurrency recorded a performance of more than 1,600%. ONDO successively crossed its peaks at $0.30, $0.60, and then $1 before marking its ATH (All-Time High) just below $1.50. It is from this last price level that the cryptocurrency faced bearish pressure, bringing its price back to $1. Fortunately for the ONDO price, this price level acted as support. Thus, the recent decline already seems to be on the verge of being made up for.

At the time of writing this text, ONDO is trading around $1.26. Buyers seem to be dominating, given that the ONDO price has recovered the value zone identified above $1. It is interesting to note that the cryptocurrency’s rebound took place on the 50-day moving average. In the eyes of investors, this can be seen as a reassuring sign for the continuation of the bullish trend of ONDO. On the cryptocurrency’s momentum side, a recovery is observed, visible both by the price itself and by the oscillators. Unsurprisingly, this could support short-term buying convictions.

Graph of ONDO/USDT (ID)
Graph of ONDO/USDT (ID)

The current technical analysis was carried out in collaboration with Elie FT, investor and passionate trader in the cryptocurrency market. Today, a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. You will find Lives, educational content, and support around financial markets in a professional and friendly atmosphere.

Focus on Derivatives (ONDO/USDT)

The open interest of ONDO/USDT perpetual contracts has generally followed the direction of its underlying’s price. This indicates a healthy market, generally dominated by buyers. However, it is important to note that liquidation data mainly shows liquidations of buying positions to the benefit of sellers. Moreover, by observing the funding rate, it has been negative for a few days. Each of these elements demonstrates recently intervening selling pressure.

Open Interest / Liquidations & Funding rate ONDO/USDT

The ONDO/USDT liquidation heatmap over a month reveals that the liquidation zone at $1.40 was reached before the last price drop of ONDO. Thus, it seems that this level sparked selling interest. Now, the most significant liquidation zone is above the current ONDO price, around $1.36. The approach of the price to this level could trigger a massive amount of orders, increasing the risk of a period of heightened volatility. This zone, therefore, represents a crucial point of interest for investors.

ONDO/USDT Liquidation Heatmap (1 month)

Hypotheses for ONDO Price

  • If the ONDO price stays above $1, we could anticipate a bullish recovery up to $1.40. The next levels to consider if the bullish movement continues would be, first, ONDO’s ATH, around $1.52, and higher up, the $1.75 level. At this stage, this would represent an increase of over 40%.
  • If the ONDO price fails to stay above $1, we could consider a return around $0.94. The next support to consider if the bearish movement continues would be around $0.85. At this stage, this would represent a decline of about 33%.

Conclusion

ONDO showed notable resilience after a promising launch, with support from buyers and positive signs for a resumption of the bullish trend. Everything suggests that its growth potential is not yet at its peak. Nevertheless, some indicators seem to illustrate pessimism, leaving room for the possibility of a continuation of the downward movement in the short term. Thus, it will be crucial to closely observe the price reaction to different key levels to confirm or invalidate the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “squeezes” in each scenario. Finally, let’s remember that this analysis is based solely on technical criteria and that cryptocurrency prices can quickly evolve based on other more fundamental factors.

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Family Trading

Family Trading is a community of proprietary traders active since 2017, offering live sessions, educational content, and support around financial markets including cryptocurrencies, with Elie FT, an investor and passionate trader in the crypto market, by its side.

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