ONDO (ONDO) is currently under substantial downward pressure, with the cryptocurrency shedding over 5% in value within the last 24 hours and a notable 19% loss over the past month. As the market cap now hovers around $2.5 billion, ONDO continues to trail behind other Real World Asset (RWA) coins like Chainlink and Mantra, which have outperformed in the space. Despite a slight rebound in the Relative Strength Index (RSI), there is growing concern that ONDO may struggle to hold crucial support levels, especially with large holders (whales) pulling back their positions.

ONDO’s RSI Shows Mild Recovery, but Market Sentiment Remains Fragile

The RSI, a key indicator of market momentum, provides some mixed signals for ONDO. After dipping as low as 27.5 earlier this week, the RSI has managed to recover slightly, now sitting at 34. While this rebound indicates a small recovery from oversold conditions, it still remains in the lower half of the scale, suggesting that the market sentiment remains weak. Typically, readings below 30 are viewed as oversold, which can signal that the asset is undervalued and may experience a short-term price bounce. However, with the RSI staying near these low levels, ONDO’s price could face further downside if the selling pressure picks up again.

If the RSI continues to climb past the 40 or 50 mark, it could signal a shift toward bullish momentum. However, any further decline below the 30 mark would reinforce the ongoing bearish outlook, potentially leading to a deeper price correction.

Whale Activity Signals Waning Confidence

Whale behavior is often a key indicator of future market movements, as large holders can significantly influence price trends. In late March, whale activity fluctuated, with the number of addresses holding between 1 million and 10 million ONDO tokens briefly rising from 188 to 195 between March 22 and March 26. However, these addresses have since reduced to 191, suggesting that whales may be pulling back or taking profits. This trend is concerning, as it indicates that the confidence among ONDO’s largest holders may be waning, which could exert downward pressure on the price in the short term.

When whales begin to decrease their holdings after a period of accumulation, it often signals a potential price correction. With the recent pullback in whale accumulation, ONDO could face resistance in maintaining any upward momentum unless larger investors return to the market.

ONDO May Test Key Support at $0.70

Technically, ONDO’s Exponential Moving Average (EMA) lines are currently aligned in a bearish formation, signaling that the downtrend could continue. The price is expected to test a key support level at $0.73 in the near term. If this level fails to hold, the token could drop below $0.70 for the first time since November 2024.

Such a drop would represent a significant psychological level for investors, potentially increasing the downside risk for ONDO. Furthermore, ONDO has been struggling to keep pace with other RWA coins, which further adds pressure to its near-term outlook.

Potential for Reversal?

Despite the ongoing bearish trends, ONDO is not entirely out of hope. A shift in sentiment could prompt a reversal of the current trend. The first key resistance level to watch for an upward move is $0.82. If ONDO manages to break above this level, it could signal the beginning of a broader recovery, with potential price targets at $0.90 and $0.95.

Should the RWA sector experience a resurgence, ONDO could aim for the $1 mark and ultimately target the next major resistance at $1.23. However, the ability of ONDO to reverse its trend and break through these levels will largely depend on a return of whale support and an improvement in broader market conditions.

Conclusion: Cautious Outlook for ONDO

ONDO is currently at a critical juncture. The cryptocurrency has been facing significant selling pressure, with a weakened RSI, declining whale activity, and bearish technical indicators. The price is at risk of falling below the crucial $0.70 level, a drop that would mark a new low since November 2024. However, if ONDO can find support and reverse its momentum, a recovery towards $0.90 or even $1 could be on the horizon.