Home Altcoins News Ondo (ONDO) Token Eyes Recovery: Key Resistance Level in Focus

Ondo (ONDO) Token Eyes Recovery: Key Resistance Level in Focus

Ondo price analysis

The cryptocurrency market is buzzing with activity, and Ondo (ONDO) is no exception. After a steep decline from its December highs, ONDO has been working to regain lost ground. Despite a recent 3% uptick, the token remains under pressure, with a key resistance level at $1.29 standing in the way of a sustained recovery.

At the time of writing, ONDO is trading at $1.18, a modest improvement after losing nearly 50% of its value in recent weeks. While there are encouraging signs of a rebound, market indicators suggest the path to recovery won’t be easy.

Price Challenges and Market Signals

One of the biggest hurdles for ONDO is the $1.29 resistance level. Technical indicators, such as the Parabolic SAR, currently point to bearish momentum, with the indicator sitting above the price—a sign that sellers remain in control.

However, a TD Sequential signal, which often marks the end of bearish trends, has appeared on the 3-day chart. This suggests that the selling pressure may be easing. If ONDO can gain enough buying interest, a breakout above $1.29 could signal the beginning of a more substantial recovery phase.

Investor Activity: A Glimmer of Hope

Behind the scenes, data shows growing interest in ONDO among investors. Over the past week:

  • New wallet addresses have risen by 16%,
  • Active addresses have surged by 39%, and
  • Zero-balance addresses have jumped by 42%.

This surge in activity suggests that ONDO’s recent price drop may be attracting buyers who see long-term potential. Such increases in address activity often indicate that accumulation is underway, a positive sign for future price movement.

Network Engagement on the Rise

Another promising development is the increase in ONDO’s transaction volume. Recent data reveals a jump in daily transactions, from 1,686 to nearly 3,000. Historically, spikes in transaction activity have coincided with periods of accumulation, often preceding price recoveries.

If this trend continues, it could further strengthen ONDO’s recovery prospects. However, consistency in transaction activity will be crucial to confirming a bullish trend.

Market Sentiment: Mixed but Improving

The broader market sentiment around ONDO remains cautious. Metrics like the Directional Movement Index (DMI) highlight a dominant bearish trend, with the negative directional index significantly outpacing the positive.

At the same time, the Market Value to Realized Value (MVRV) ratio has dropped to 53%, down from its December highs. This decline suggests reduced profit-taking pressure, which could indicate that the market is stabilizing. Historically, such stabilization has been a precursor to price recoveries.

Key Levels to Watch

For ONDO to truly shift into recovery mode, it must break through the $1.29 resistance level. This critical barrier has repeatedly held back upward momentum, but a decisive breakout could change the narrative.

Traders should also monitor support levels near $1.18, as a drop below this range could signal further bearish pressure. On the flip side, sustained growth in address activity and transaction volume could pave the way for a more optimistic outlook.

Is ONDO Ready for a Comeback?

While ONDO still faces challenges, there are clear signs that the token may be on the verge of a turnaround. Increased investor interest, rising transaction counts, and the appearance of a bullish TD Sequential signal are all reasons for cautious optimism.

However, breaking through the $1.29 resistance level remains the key to confirming a recovery. Until then, ONDO’s outlook will likely remain uncertain, with both risks and opportunities on the horizon.

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Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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