Ondo Finance (ONDO) is showing signs of tightening price action as traders watch for a potential bullish breakout. The current compression could favor buyers if resistance is reclaimed, while cautious market activity reflects limited conviction. Growing adoption of tokenized financial assets also provides a supportive longer-term backdrop for ONDO.
ONDO Compression Signals Potential Breakout
ONDO is showing signs of increasing price compression as traders wait for a decisive directional move. Crypto analyst Michaël van de Poppe believes the tightening structure could eventually favor a bullish breakout, particularly if buyers reclaim the major resistance levels currently limiting the recovery.
Source: Michael van de Poppe’s X Post
As per Van de Poppe, $0.31 is the possible entry point in case ONDO undergoes another downward move. Instead of following the breakout, it seems that Van de Poppe prefers to wait for a retracement to this level in order to get into a long position. In case this bullish structure emerges, the first possible upside objective is $0.50.
The outlook still requires confirmation. ONDO is trading below key resistance, and hence buyers will need to build more strength before they can turn the anticipated rebound into something meaningful.
Also Read: ONDO Price Holds Above Key EMAs as Tokenization Gains Traction
ONDO Price Faces Heavy EMA Resistance
According to the TradingView chart analysis, Ondo is currently trading at $0.34846 and is still trading under the 20, 50, 100, and 200 periods of its exponential moving average. The EMAs have been placed close to each other within the price range of $0.35400 and $0.37137.
Source: TradingView
The breaking above $0.37137 may show that the buyers have started to gain short-term momentum, which may clear the path towards the previous highs of $0.44000. The recapture of this level would increase the possibility of reaching Van de Poppe’s target price of $0.50.
On the negative side, however, the $0.31000-$0.32500 level is still an important structural support level. Staying in this area means that the compression pattern will be maintained; breaking out of this pattern may result in ONDO testing the $0.29500 level.
The momentum indicators show caution. The 14-day RSI stands at about 45.97, whereas its signal line is at 49.82. Since the RSI is below the 50 neutral level, the buyers have not gained sufficient momentum yet.
Falling Volume Highlights Cautious Positioning
Derivative statistics for ONDO by CoinGlass show that there is falling market activity regarding ONDO. There is a 37.93% decline in trading volume to about $143.26 million, and open interest decreased by 1.20% to around $225.68 million.
Source: Coinglass
Both the falling volumes and the declining open interest point towards increased caution on the part of traders, with ONDO stuck in a range between support and resistance levels. At present, neither bulls nor bears seem confident enough to make an established trend.
This means that volume becomes crucial during the next breakout attempt. If ONDO move higher than its EMA resistance level in growing volumes, this would be a sign of real change in the trend.
In contrast, a breakout that lacks significant volume would likely be unable to sustain itself and would most probably fail.
Tokenized Asset Adoption Supports Long-Term Outlook
Though the technical structure of ONDO on the short-term horizon is ambiguous, there is one more catalyst at work due to the growth of the whole sector of tokenized assets. The data presented by Whale Factor show that the number of ONDO tokenized stock holders has grown considerably.
Source: Whale Factor’s X Post
Holders increased by 93% within 30 days and approached 450,000. In the meantime, the wider stock-token market grew to be close to $3 billion, having almost doubled in three months.
This growth underscores the rising trend of representation of traditional assets through blockchain. For the Ondo Finance team, further expansion of tokenization markets can contribute to the long-term story of ONDO despite the near-term technical resistance of the token.
What Comes Next for ONDO?
The next move for ONDO could be highly influenced by how well the buyers will be able to defend the support and capture the overhead EMA cluster. A move above $0.37137 would act as a positive indicator, and a move towards $0.44000 could pave the way to achieve his target of $0.50.
However, the $0.50 figure is still just an analyst’s estimate and not a certain event. Traders may pay attention to the $0.31-$0.325 support range, EMA resistance level, trading volumes, and open interest for the time being.
A rally fueled by higher trading action would show that there is a reversal happening with the compression on ONDO, while the inability to stay above support would mean that the bearish setup remains intact.
Also Read: ONDO Price Eyes a Breakout to $0.90 as Tokenized Asset Adoption Fuels Outlook
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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