Why ONDO faces bearish risk despite double-digit price gains
Journalist
Posted:
Key Takeaways
The launch of Constancy’s FDIT on-chain cash market fund highlighted ONDO’s rising listing of top-tier asset supervisor partnerships, however the worth motion within the coming days won’t replicate intense bullishness.
Main asset managers continued to tokenize conventional monetary merchandise. Fidelity launched the Constancy Digital Curiosity Token (FDIT) on the tenth of September.
It’s an on-chain cash market fund backed by U.S. Treasuries, principally from Ondo Finance’s [ONDO] Quick-Time period U.S. Treasuries Fund (OUSG) as the one anchor and largest investor.
In doing so, Constancy joined BlackRock, WisdomTree, and Franklin Templeton in providing tokenized cash market or Treasury funds. For the reason that OUSG launch in June 2023, Ondo Finance was one of many first tokens with on-chain entry to U.S. Treasuries.
Over the previous two days, ONDO has gained 14.1%, rallying from $0.95 to $1.08. Bitcoin [BTC] was up 3.3% and Ethereum [ETH] climbed 5.4% throughout the identical interval, serving to clarify ONDO’s bullish sentiment.
Nonetheless, technical evaluation confirmed that the token was headed towards a provide zone, and merchants and traders must be cautious of a development reversal.
Vary-bound worth motion of ONDO threatens bulls
Supply: ONDO/USDT on TradingView
The 1-day market construction was bullish, and the important thing swing excessive and low have been marked in orange. They have been at $1.17 and $0.85, respectively, whereas a variety formation (white) was additionally recognized. ONDO has traded inside this vary since July.
On the time of writing, the worth was at a key provide zone from mid-August at $1.08. One other 7% transfer greater would take ONDO to the vary highs. Nonetheless, it was unclear if the present transfer may attain the vary highs.
The CMF on the every day timeframe was beneath -0.05, displaying sturdy capital outflow from the market. Although the MACD showcased bullish momentum, the vendor dominance was not overthrown.
Subsequently, ONDO swing merchants must be looking out for a bearish development reversal at $1.08 and $1.17.
Sustained shopping for strain and excessive buying and selling quantity alongside a breakout previous $1.17 could be a powerful bullish sign within the coming weeks, however till then, the vary formation would doubtless be revered.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion
