Ondo Finance (ONDO), a decentralized finance (DeFi) protocol, has shown a promising recovery in recent days after experiencing a significant 38% correction over the past month. The price of ONDO has rebounded by nearly 7% in the last 24 hours, as buyers step in and attempt to reclaim a $3 billion market cap. This recent price action signals the possibility of a trend reversal, but critical resistance levels remain in play.

Key Indicators Point to a Potential Reversal

Ondo Finance’s price has faced downward pressure recently, but technical indicators show signs that the trend could soon shift. The Directional Movement Index (DMI) and Chaikin Money Flow (CMF) are showing improving market dynamics, with selling pressure starting to fade and buying interest beginning to increase.

The DMI shows that while the overall trend remains bearish, the strength of the downtrend has begun to weaken. The Average Directional Index (ADX) is currently at 33.8, down from 40.5 the previous day. The ADX measures the strength of a trend, with readings above 25 signaling a strong trend. While ONDO’s bearish trend is still intact, the decrease in ADX suggests that the downtrend could be losing momentum. Moreover, the +DI (Directional Indicator for buying pressure) has risen to 21.9 from 11.18, while the -DI (Directional Indicator for selling pressure) has dropped from 34.3 to 24.11. This shift points to a growing increase in buying interest, although the downtrend remains in place as long as -DI remains above +DI. A cross of the +DI above -DI could signal a confirmed trend reversal, allowing the bulls to take control.

CMF Suggests Growing Bullish Momentum

Another indicator showing signs of recovery is the Chaikin Money Flow (CMF). The CMF measures the flow of money into and out of an asset, with values above zero indicating buying pressure and values below zero signaling selling pressure. ONDO’s CMF has increased to 0.07, up from a negative reading of -0.32 just three days ago. This positive movement indicates that buying pressure is starting to accumulate, potentially signaling the beginning of a sustained price rally. While the CMF is still relatively low, continued buying volume is needed to confirm a strong uptrend. If the CMF continues rising, it could provide the foundation for a breakout, leading ONDO to reclaim its position as one of the top Real-World Assets (RWA) coins.

Resistance and Key Levels

Despite the recent positive price action, key resistance levels remain ahead for ONDO. The price needs to break through the $0.90 mark to confirm the bullish reversal. If ONDO manages to surpass this resistance level, it could rally toward $1.08 and potentially even $1.20. A breakout above $1 could signal a continuation of the upward movement, putting ONDO back on track for a return to its previous market cap.

However, failure to break above $0.90 could result in a pullback, and if selling pressure returns, ONDO’s price could test lower levels, potentially falling to $0.73. A drop below $0.70 could lead to the asset’s lowest price since November 2024, which would put the bulls at risk of losing control.

Conclusion

Ondo Finance is currently at a critical juncture, with its price showing signs of a potential trend reversal. The recent increase in buying pressure, supported by improving technical indicators, could lead to a rally if the price breaks through key resistance levels. However, the market remains cautious, and ONDO must overcome the $0.90 resistance to confirm the bullish trend. Investors and traders should monitor the price action closely, as the next few days could determine whether ONDO can reclaim the $1 mark or if the downtrend will resume.