Ondo Finance is emerging as a major player in real-world asset tokenization, positioning itself as one of the altcoin contenders likely to shine in this bull cycle. Despite its strong fundamentals, the beginning of 2025 has been challenging for ONDO, with the token suffering a massive selloff that led to a 33% decrease in value since January 4. to raise
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Recently leading crypto analyst Ali Martinez shared strong data that could indicate a turnaround for ONDO. According to Martinez, ONDO's funding rate has fallen to -60%, a rare fact that exchanges pay traders to go long on the token. Such an environment often presents a very negative sentiment in the short term, which may cause a sharp reversal as market conditions normalize.
Ondo Finance could present an interesting opportunity to aspiring investors take advantage of the growth of asset tokenization in the world place in the crypto space. As metrics suggest a potential rebound, all eyes are on ONDO to see if it can recover and perform as expected in this bull cycle.
Greedy Bears keep the price
Ondo Finance is set to consolidate its position as a standout project in the world asset sector (RWA), attracting a lot of investor attention during the post-election rally in November 2024. During the this time, $ONDO went up more than 260% in just weeks, demonstrating its ability to generate huge returns in favorable market conditions. Despite the recent price decline, Ondo is still a very attractive altcoin due to its strong fundamentals and leadership in the RWA space.
Senior analyst Ali Martinez recently shared interesting data on X which sheds light on ONDO's current situation. According to Martinez, the token's funding rate has reached -60%. This means that exchanges are effectively paying traders to take long positions on ONDO, creating a unique opportunity.
Such large funding levels usually indicate higher selling pressure, but the price has not fallen under the pressure of bearish sentiment. This dynamic often indicates fundamental strength and the ability to turn sharply.
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This situation could indicate overconfidence among short sellers who strongly bet against ONDO. If buying pressure resumes and overwhelms the shorts, that could lead to a squeeze, driving the price higher. For investors looking for opportunities in the altcoin market, Ondo Finance's current position offers a strong mix of risk and reward.
Navigating volatility amid Bearish sentiment
The Ondo Finance (ONDO) exchange rate today stands at $1.20. The token has seen sharp movements, falling as low as $1.09 before bouncing to a local high of $1.30. Despite these fluctuations, bears seem to be in control, overshadowing the recovery of the broader market.
For bulls to retrace and establish a reversal, retrieving the $1.35 mark is critical. This level is a short-term protection point that could indicate renewed interest if passed. Beyond that, the $1.50 level is the next important target, which could signal a move to a supportive trend if it is achieved and held as support.
On the other hand, failure to sustain the $1.20 level could exacerbate bearish sentiment, putting additional pressure on the price. A sustained break below this level could open the door to further declines, testing lower demand zones and discouraging investor confidence.
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While ONDO's fundamentals and market potential remain strong, its short-term price action suggests a cautious approach. Bulls must work decisively to recover key levels and move the narrative to recovery, while bears continue to reduce uncertainty in the market to keep the signal under pressure.
Featured image from Dall-E, chart from TradingView
