The ONDO price has showcased a lackluster performance over the past week, hovering around the $1 level. The daily trading chart reveals candles with short bodies and prominent rejection wicks on both ends, suggesting indecision among buyers and sellers. Should Bitcoin continue to face resistance at the $70,000 mark, it may lead the broader altcoin market into an extended period of consolidation for the next month.

Ondo Price Nearing a Decisive Breakout

Over the past two months, the ONDO coin price has witnessed a steady correction trend under the influence of a downsloping trendline. The dynamic resistance plunged the asset value from $1.48 to $0.96, accounting for a 35% loss, while the market cap fell to $1.33 Billion.

ONDO’s bearish momentum has diminished since the mid-July recovery, supported by an ascending trendline that has been intact since May 2024. This trendline has assisted in forming a triangle pattern similar to what was observed in the second quarter, which previously triggered a significant 71.5% rally.

The Bollinger Bands show a squeezed range, highlighting a period of low volatility for the ONDO price. This setup typically precedes a decisive breakout, which could determine the direction of the next significant rally. The Moving Average Convergence Divergence (MACD) indicator displays multiple crossovers between the MACD line (blue) and the signal line (orange), suggesting a neutral market sentiment and the possibility of extended consolidation.

A bullish breakout from the current overhead trendline is essential for buyers to regain control. Such a breakout could propel the ONDO price past its all-time high of $1.48, potentially leading to a 45% increase in value.

ONDO/USDT- 1d Chart

Data from Santiment analytics shows the supply held by non-exchange addresses has increased from 8.45 billion to 8.52 billion ONDO since last month. This rise suggests that more coins are being moved off exchanges and into private wallets, indicating that investors are likely preparing for long-term holding. 

This behavior often implies a bullish sentiment as investors are less likely to sell in the short term.

Also Read: Mt. Gox Transfers 45,511 Bitcoins to Repay Creditors, BTC Selloff Looms

Supply Flow into exchanges | Santiment

The 30-day MVRV ratio hit a low of -22% on July 7 and is currently at -4.47%. The MVRV (Market Value to Realized Value) ratio measures the average profit or loss of all tokens in circulation based on their current price versus their acquisition price. A negative MVRV ratio indicates that the average holder is currently at a loss. 

The recent move from -22% to -4.47% suggests a recovery, indicating that the market is approaching a more neutral or slightly optimistic state.

MVRV Ratio | Santiment

On a contrary note, if the altcoin price breaks below the support trendline, it will accelerate the supply pressure and bolster an extended correction to $0.7.

The post ONDO Price Gears Up for $1.5 Rally as On-Chain Recovery Gains Steam appeared first on CoinGape.

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Filed under: News - @ July 31, 2024 4:19 pm