In the past 24 hours, the Ondo Finance [ONDO] token rallied by 2.24%, with a daily trading volume increase of just over 2%. The Open Interest also rose by 1.95% for the day.
Yet, the altcoin has faced an 11.3% drawdown since it made a local high at $0.427 last Thursday, July 30.
The decline followed structured token deposits by the Ondo Finance team to Coinbase, a move that may have weighed on market sentiment as traders anticipated potential selling pressure.
The token was in a higher timeframe downtrend. It saw a bullish breakout from a descending triangle pattern. As AMBCrypto warned, the $0.413 resistance zone was not flipped to support, keeping the bearish idea alive and kicking.
In other news, the Ondo crypto perps volume was rocketing higher. It might be able to challenge the leading decentralized exchanges, Hyperliquid, Aster, and Lighter, if the growth momentum continues.
The DeFi tokenization platform also announced that it appointed Adam Schlisman, a CFA charter holder, as Chief Financial Officer. He joins from a global macro hedge fund, Monashee Investment Management, where he served as CFO.
The price front for ONDO crypto remains precarious
In both the spot and derivatives markets, taker sell orders were dominant. This meant the 3-month cumulative volume delta [CVD] on CryptoQuant reflected aggressive selling.
A bull trap might be in place. The breakout from the triangle pattern was unable to establish a bullish swing structure. Moreover, the demand needed to sustain a trend shift was simply not yet in place.
The OBV was unable to trend higher, reflecting a lack of buying pressure.
The internal structure was bearish, and further ONDO losses can be expected, especially if the $0.37 area is flipped from support to resistance.
Traders’ call to action- Sell
The rally toward $0.45 established a clear magnetic zone at $0.43, and another, smaller liquidity cluster around $0.40. As things stand, the lack of demand behind the altcoin meant that a move up to $0.43 was unlikely.
Instead, a shallow bounce to $0.40 may get sold off. In this scenario, selling pressure would push prices to $0.363, the next magnetic zone, and possibly as deep as $0.30, the base of the mid-July rally.
Final Summary
- ONDO faced aggressive selling pressure in both the spot and derivatives markets, CryptoQuant data showed.
- The swing structure remained bearish, and a move above $0.47 is needed to flip the structure around.
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