ONDO has been on a steady decline, dropping over 5% in the last 24 hours and losing 19% in the past 30 days. Its market cap now sits around $2.5 billion, falling behind competitors like Chainlink and Mantra.
Despite a slight recovery, technical indicators and whale activity suggest that ONDO’s struggles may not be over.
ONDO RSI Shows Signs of Recovery
ONDO’s Relative Strength Index (RSI) currently stands at 34, rebounding from a low of 27.5. Just two days ago, it was at 54.39, highlighting a rapid shift in momentum.
The RSI, a key momentum indicator, measures price changes on a scale of 0 to 100. Readings below 30 indicate an oversold asset, while those above 70 suggest an overbought condition.
Although ONDO has exited oversold territory, it remains near the lower end of the scale, signaling fragile market sentiment. If the RSI climbs above 40 or 50, bullish momentum could return. However, if selling pressure pushes the RSI below 30, further declines may follow.
Whale Activity Signals Caution
ONDO whale addresses, which hold between 1 million and 10 million ONDO, have fluctuated in recent weeks. The number of these large holders rose from 188 to 195 between March 22 and March 26 but has since declined to 191.
Whale activity plays a crucial role in market sentiment and price trends. The failure to sustain growth beyond 195 whale addresses suggests a bearish shift. Some whales may be taking profits or reducing exposure, adding downward pressure to ONDO’s price.
When large investors exit positions after accumulation, it often signals price corrections. ONDO may struggle to regain momentum until whales resume accumulation.
Can ONDO Hold Above $0.70?
ONDO’s Exponential Moving Averages (EMA) indicate a bearish trend. If the decline continues, the token may test support at $0.73. A break below this level could push ONDO under $0.70, a price it hasn’t seen since November 2024.
ONDO has also underperformed compared to other Real World Asset (RWA) tokens like Mantra, adding more pressure to its short-term outlook.
However, a shift in market sentiment could spark a recovery. The first key resistance level to watch is $0.82. A breakout above this could push ONDO toward $0.90 and $0.95. If the RWA sector regains momentum, ONDO could even surpass $1, with the next major resistance at $1.23.
