Home Altcoins News ONDO Price Action: Whale Sell-Off and Retail Support Drive Volatility

ONDO Price Action: Whale Sell-Off and Retail Support Drive Volatility

ONDO Price

ONDO, a rising cryptocurrency, has recently experienced a sharp sell-off by a major whale, who offloaded 10.97 million ONDO tokens for a total of $13.57 million USDC. This move resulted in a significant $3.8 million loss for the whale, who had held the tokens for only three months. This sell-off, which has raised concerns about the sustainability of ONDO’s recent bullish momentum, came after ONDO had broken out of a descending channel, suggesting a potential upward trend. Despite this setback, the token’s price action and technical indicators provide mixed signals, giving both cautious optimism and underlying risks.

At the time of writing, ONDO was trading at $1.36, showing a 9.65% increase in the last 24 hours. While this price increase is promising, ONDO is still far from its recent high of $2.20, leaving the token’s future trajectory uncertain. The critical resistance level at $1.62 is a key hurdle that bulls must overcome to validate the breakout and ensure a continued upward move. Breaking through this level could mark the beginning of a more substantial rally, but a failure to do so may result in renewed selling pressure, jeopardizing the short-term recovery.

Looking at technical indicators, there are signs of potential bullish momentum. The Stochastic RSI has been displaying positive movement, with the %K line crossing above the %D line, signaling a build-up of buying pressure. This alignment is often a strong indicator that the token could move higher. Furthermore, the Parabolic SAR, a trend-following indicator, has also shown a positive shift, confirming the possibility of a reversal from a downtrend to an uptrend. However, the crucial level of $1.62 still looms, and unless ONDO can maintain its momentum, this resistance may act as a significant roadblock.

Network activity is another key factor to consider in understanding ONDO’s price action. Over the past week, ONDO’s active addresses surged by 43.65%, while new addresses increased by 24.89%. These metrics suggest that ONDO is gaining traction among new investors, signaling growing interest in the token. However, a closer look at the data reveals a troubling trend: the number of zero-balance addresses has surged by 75.46%. This suggests that while new investors are entering the market, a portion of existing holders is exiting their positions, possibly due to uncertainty about the token’s long-term viability. This mixed sentiment creates volatility and uncertainty, making it difficult to predict the direction ONDO will take in the near future.

The involvement of retail traders has played a significant role in stabilizing ONDO’s price despite the whale sell-off. Retail transactions, especially those under $10 million, saw a substantial rise of 69.29%, indicating a shift in market dynamics. As larger whales reduce their positions, retail traders are stepping in to provide the necessary support for ONDO’s price. However, this retail-driven recovery may be short-lived if whale activity remains absent. The lack of large capital inflows could limit ONDO’s ability to build sustained upward momentum.

Additionally, liquidation data suggests that ONDO has thus far avoided major sell-offs or liquidations, indicating that the market has not yet reacted in an overly volatile manner. However, it is important to keep in mind that this stability may be temporary. If additional whales decide to exit their positions or if investor sentiment shifts, ONDO could face a period of increased volatility.

In conclusion, while ONDO’s recent breakout and growing retail interest provide some optimism, the absence of whale support and the challenges posed by resistance at $1.62 may pose significant hurdles. ONDO’s ability to sustain its upward momentum will depend on whether it can break through resistance, attract further retail participation, and avoid large-scale sell-offs. The next few weeks will be critical in determining whether ONDO can maintain its recovery or face a potential pullback.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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