The cryptocurrency market has seen an uptick in whale activity, with major platforms like Binance, Upbit, and Wintermute significantly increasing their holdings of Ondo (ONDO). Despite a minor dip last week, ONDO has seen a notable reversal, gaining 3.64% on the daily chart and a remarkable 49.42% over the past month. As whale accumulation intensifies and spot traders reduce available supply, ONDO is positioned for potential upward pressure.

Whale Accumulation Fuels ONDO Price Optimism

Whale investors, or large holders, are often seen as key indicators of future market trends. According to a Twitter analyst, Jacky, major exchanges have been quietly increasing their positions in ONDO. South Korea’s Upbit, one of the largest cryptocurrency exchanges, has notably grown its ONDO holdings by over 200% in the last five months, now holding 1.86% of the token’s total supply.

Jacky pointed out, “Upbit has gone from 50 million ONDO to 185 million ONDO, accounting for 1.86% of the total supply.” Similarly, Binance has also been increasing its position, raising its holdings from 594,000 ONDO to 631,000 ONDO in just a few days. This strong accumulation suggests that major players are anticipating a potential price surge, as whale activity tends to precede market rallies.

Adding to the bullish sentiment, Wintermute, a key cryptocurrency market maker, has also joined the accumulation spree, signaling increased confidence in ONDO’s future performance. As these whales continue to add to their positions, the probability of upward price pressure increases, potentially driving ONDO’s value higher.

Supply Squeeze Could Push ONDO’s Price Higher

The rising accumulation by whales is coinciding with a tightening supply of ONDO on exchanges. According to Coinglass, the Exchange Netflow for ONDO has turned negative, meaning more ONDO is being withdrawn from exchanges than deposited. Over the past week, approximately $4.10 million worth of ONDO has been moved to private wallets, reducing the amount available for trade.

This shrinking supply could contribute to a supply squeeze, where the reduced availability of ONDO combined with increasing demand pushes the price higher. The growing interest from whales and a decreased circulating supply on exchanges suggest that ONDO could soon experience a significant upward price movement, should this trend continue.

Short Sellers May Face Losses as Bullish Sentiment Builds

While ONDO’s price has shown significant gains recently, the market has also seen some short-term fluctuations. In the past 24 hours, about $297,180 worth of long positions were liquidated, as the market shifted briefly to a bearish bias. However, this doesn’t appear to have dampened the overall market sentiment, with Open Interest—which tracks the number of active, unsettled derivative contracts—declining as short contracts increase.

The rise in short positions suggests that some traders are betting against ONDO’s price. However, with whales accumulating and the broader market sentiment tilting bullish, these traders may face significant losses if the upward momentum continues.

What’s Next for ONDO?

Given the rising interest from whale investors and a tightening supply, OND0 could be poised for a continued rally. The combination of increasing demand and decreasing available supply on exchanges could lead to a sharp price increase. As whale investors continue to build their positions, the chances of a major price surge increase, potentially pushing ONDO towards new highs.

For derivative traders, particularly those holding short positions, the bullish sentiment surrounding ONDO may soon result in mounting losses. If the upward trend continues, it could force these traders to close their positions, further accelerating the price movement.

Investors watching ONDO should keep an eye on the behavior of major players, the ongoing supply dynamics, and broader market trends, as these factors will likely determine whether ONDO can maintain its upward momentum and achieve new price milestones.