Over the past 24 hours, ONDO has seen a solid 13.26% increase, pushing its price to $1.80. While this has been a positive movement for investors who entered the market last week, concerns about the future price movement are beginning to surface.

Whale Activity and Market Sentiment

A major development fueling optimism for ONDO’s short-term outlook has been the large-scale purchase by a U.S.-based whale investor. This whale, who bought over 1 million ONDO tokens worth approximately $1.83 million on Coinbase, has drawn attention to ONDO, signaling increased confidence in the asset’s future. Whale transactions like these typically attract more interest from retail traders, raising further demand and pushing prices higher.

The whale’s entry occurred after ONDO broke out of a bullish flag pattern. The token was previously trading within a defined range before gaining momentum. This bullish breakout, combined with the whale’s purchase, has led to speculation that ONDO could see a continued rally, potentially pushing the price up by an additional 49.63%, which could set a new all-time high of around $2.44.

Technical Indicators and Bullish Patterns

ONDO’s price chart indicates a strong upward momentum, with technical indicators supporting this bullish outlook. The Parabolic SAR (Stop and Reverse) indicator, which tracks trends, has shown a series of dots positioned below the price, signaling an uptrend. Additionally, the AROON indicator, which tracks the strength of a trend, shows that the market is in an overall uptrend, with the orange line (indicating a strong trend) far surpassing the blue line (indicating weak trend strength).

These indicators suggest that ONDO could continue its bullish rally in the near future, and the potential for further price gains remains on the table. However, while these patterns are promising, there is a key issue that could hinder ONDO’s sustained growth.

Declining Trading Volume: A Red Flag?

Despite the impressive 13.26% price surge, ONDO’s trading volume has seen a decline. In fact, the total trading volume dropped by 10.75%, bringing it to $620.09 million. This drop in volume presents a potential concern for ONDO’s continued rally. In the world of cryptocurrency, a price surge without a corresponding increase in trading volume often signals underlying weakness. It could suggest that the rally is being driven by a limited number of buyers, rather than widespread market participation.

When trading volume decreases while prices are increasing, it often means that the buying pressure is losing steam. For ONDO to sustain its upward trajectory, a simultaneous increase in both price and volume is necessary. Without this alignment, the rally might lack the solid foundation needed to push ONDO to its next key resistance levels.

Short-Term Outlook

While ONDO has shown impressive growth, its short-term price targets remain under scrutiny. The significant whale buy has generated positive sentiment and could help drive the price toward new highs, but the declining trading volume raises doubts about whether the rally will have enough support to push the price further.

For ONDO to achieve its short-term target of $2.44, both the price and trading volume need to continue rising in tandem. If the volume fails to pick up and continues to decline, there is a real risk that the current price surge could stall, or even reverse. Traders and investors should monitor the volume closely in the coming days to assess whether ONDO can maintain its bullish momentum.

In conclusion, while ONDO has the potential for significant gains, its short-term price targets could be at risk due to waning market participation. The coming days will be crucial in determining whether ONDO can hold its ground or if the market will lose steam, causing the rally to falter.