Ondo Finance has faced major challenges in the past few weeks, with its price falling more than 30% from its all-time high of $2.14. Despite the recent downturn, many analysts remain optimistic about ONDO's ability to recover, citing its strong performance earlier this cycle as evidence of its resilience. As one of the best altcoins, ONDO has consistently attracted the attention of investors, leading to speculation about its next move.
Related Reading
However, caution is required. Notable analyst Ali Martinez recently shared a technical analysis warning that ONDO may be at risk of further correction. Martinez highlights how a head and shoulders pattern could form on the price chart, a bearish signal that is often associated with a reversal. If this pattern pans out, it could lead to more selling pressure and a deeper pullback.
The coming days will be crucial for Ondo Finance as he navigates this momentous moment. Investors will be closely watching if the token can resist bearish signals and bullish reversal or if the alarming pattern will confirm, leading to further decline. For now, ONDO's future hangs in the balance, with market sentiment and technical indicators offering conflicting signals about its short-term path.
ONDO testing critical demand
Ondo Finance has faced a major correction after its strong rally earlier in the cycle, now testing critical demand levels at key price points. The price of the token stopped at an all-time high, around $1.50, which is now an important support level. If it holds above this mark, bullish momentum could return, possibly setting the stage for a renewed rally.
However, the main analyst Ali Martinez they raised concerns with technical analysis that suggests that ONDO may be forming a bearish head-and-shoulders pattern. This pattern, if confirmed, usually indicates a reversal and may lead to more selling pressure.
Martinez warns that a decisive close below the $1.48 level could trigger a steep 30% correction, driving ONDO's price down to around $1.05. Such a move would be a big problem for the brand and the investors.
Related Reading
To invalidate this bearish position, ONDO needs to recover the $1.86 level as support, a move that would indicatestrength and restore confidence in the bullish potential of the asset. Until then, the market remains in a critical phase, with traders closely watching price action for clues about ONDO's next move. The coming days will be decisive in determining whether ONDO can recover or face lower risk.
Technical Analysis: What to Expect
Ondo Finance (ONDO) is currently trading at $1.49 after successfully testing the $1.46 critical support level identified by lead analyst Ali Martinez. This level has been an important line of defense for ONDO, indicating strong buying interest at this price. The indicator appears to be stable for now, but market participants remain cautious, as broader market conditions could still influence ONDO's trajectory.
The recent resilience at $1.46 is encouraging, suggesting that ONDO may be building a base for recovery. However, a market-wide rediscovery could put additional pressure on ONDO, possibly driving its price lower and reaffirming critical demand levels. Investors are closely watching key technical levels for confirmation of a bullish rebound.
Related Reading
In order for ONDO to regain upward momentum, it is necessary to regain the $1.70 level in the coming days. A decisive move above this mark would indicate renewed strength, paving the way for an escape from support and a potential reconfirmation of previous highs. Until then, ONDO remains in a delicate position, with traders monitoring broader market sentiment and the asset's ability to maintain current support levels. The next steps will be crucial in determining whether ONDO can restart or face continued consolidation.
Featured image from Dall-E, chart from TradingView
