Ondo (ONDO) is facing a critical moment as bulls work to defend the psychological $2 level. With the token shedding 5.44% over the past 24 hours and trading volume down 32%, traders are closely monitoring key support zones that could dictate ONDO’s next move.

While short-term price action points to a potential dip toward $1.9, the broader market structure remains bullish, hinting at a possible recovery to $3 in the coming weeks.

ONDO’s Current Market Outlook

After a significant retracement to $1.3 on December 9, ONDO rebounded sharply, establishing a bullish momentum on the daily chart. This recovery formed higher lows, a key indicator of strength, supported by the Awesome Oscillator remaining above zero.

However, recent price action saw ONDO bulls retreat from a local high of $2.146, with selling pressure pushing the token back toward the $2 mark. Despite this pullback, the Chaikin Money Flow (CMF) at +0.16 indicates strong capital inflow, suggesting continued investor confidence in ONDO’s potential upside.

Key Demand Zones to Watch

The $1.67–$1.8 range has emerged as a crucial demand zone for ONDO. Historical price action and liquidity clusters suggest that this region could act as a strong support area where buyers may step in.

• $1.67 Zone: A significant reversal point highlighted by a 2-week liquidity heatmap, this level shows high liquidation interest, making it a potential magnet for prices in the near term.
• $1.8 Zone: Another key area of interest on lower timeframes, where a price bounce could occur if selling pressure intensifies.

Bullish Targets for ONDO

If ONDO manages to hold above these demand zones and sustain its bullish momentum, the next key levels to watch are $2.34 and $2.66, as identified by Fibonacci retracement levels drawn from the recent $1.3 low.

Additionally, the broader weekly outlook points to significant levels at $0.5 and $1.48, although these remain far from the current price range. For now, traders are focusing on the $1.9–$2.14 range as ONDO attempts to consolidate and prepare for its next move.

Liquidity Analysis: Will Prices Dip Further?

A liquidity heatmap from Coinglass reveals three notable clusters:

• $1.67 and $1.77 Zones: These regions exhibit high liquidation interest, suggesting they could act as price magnets in the short term.
• $2.1 Pocket: While closer to the current price, this zone shows less liquidation activity compared to the stronger $1.67 area.

Given these dynamics, ONDO may face a brief dip toward $1.7 before attempting a recovery. However, the $1.8 zone could also provide interim support, potentially leading to a short-term bounce.

Is a Rally to $3 Still on the Table?

Despite the current challenges, ONDO’s higher timeframes maintain a bullish outlook. As long as the $1.67–$1.8 demand zone holds, the possibility of a rebound remains strong. Traders aiming for long-term gains should watch for a break above $2.14, which could open the door to bullish targets at $2.34 and beyond.

Conclusion

Ondo crypto is at a pivotal stage, battling to hold its ground at the $2 level. While a dip toward $1.7 is possible, strong demand zones and a bullish higher timeframe structure suggest that a recovery could follow.

Traders should closely monitor ONDO’s price action around key levels, as a bounce from the $1.8–$1.9 range could signal the start of its next upward move. Patience and careful observation will be key as ONDO navigates this critical phase.