- ONDO has experienced a 7% rise in price, with experts forecasting a significant rally by the fourth quarter of 2024.
- Whale activities and Open Interest present varied indicators, hinting at a tempered optimism.
Ondo [ONDO], the native cryptocurrency of a decentralized finance (DeFi) protocol that aims to provide fixed yield loans supported by yield-bearing crypto-assets, is showing signs of resurgence following a substantial price drop.
On August 5th, ONDO plummeted to a low of $0.52, but it has since rallied by 7%, including an impressive 4.3% jump in the last 24 hours.
This bounce back occurs alongside increasing interest from traders and analysts, indicating potential upward movement for ONDO in the near term.
ONDO’s Falling Wedge Indicates Potential Rally
Prominent crypto analyst Captain Faibik has recently provided a bullish forecast for ONDO, suggesting that the asset might be poised for a substantial rally by the conclusion of Q4 2024.
In a recent update on X (formerly Twitter), Faibik shared a technical analysis of ONDO, indicating a falling wedge pattern in the token’s price trajectory. He remarked,
“Continue to accumulate ONDO and hold onto it with patience; you will appreciate my advice later. A new all-time high is on the horizon in Q4 2024.”
This forecast has generated additional interest in ONDO as traders speculate on its capacity to surpass previous price levels.
Source: Captain Faibik/X
The coming weeks could be pivotal in ascertaining whether ONDO will witness a breakout.
What Do the Fundamentals Indicate?
Yet, technical analysis does not illustrate the entire situation. It is essential to explore ONDO’s fundamental factors to ascertain if the prevailing market conditions align with the optimistic forecast.
A vital metric to monitor is whale activity, specifically transactions worth $100,000 or more. Based on data from IntoTheBlock, ONDO’s whale transactions have notably declined in recent weeks.
Source: IntoTheBlock
After exceeding 60 transactions in late August, this figure has subsequently dipped to only 12 transactions at the time of writing.
This signifies a reduction in high-value trades, which may imply declining interest from major investors and could dampen expectations of an imminent rally.
In conjunction with whale activity, Open Interest further assesses market sentiment. Open Interest reflects the total number of open contracts in Futures and Options markets, which can provide insight into the strength of prevailing trends.
As per data from Coinglass, ONDO’s Open Interest has seen a rise of 4.69%, with a current valuation of $83.12 million.
This increase indicates a growing interest in the token, which may suggest that traders are betting on a potential price upswing.
Source: Coinglass
Nonetheless, there is a contrasting view regarding this optimistic perspective. While Open Interest has grown, its volume has experienced a decrease of 17.91%, falling to $86.67 million at the time of this writing.
Read Ondo’s [ONDO] Price Prediction 2024–2025
This suggests that even though more contracts have been opened, the volume associated with those contracts has diminished, which might indicate uncertainty or a lack of strong conviction among traders.
This divergence between Open Interest and volume could signify mixed signals within the market, leaving ONDO’s impending price movements uncertain.
