thecoinrepublic.com
Ondo crypto ($ONDO) is in a fair nightmare of a market environment, despite the recent short-term gains. The token has been in a steep 50% price correction since mid-December, spooking investors and market participants.
However, there is a glimmer of hope on the TD Sequential signal on the 3-day chart that issued a buy signal. This has been cheerfully welcomed by traders still battling the bearish pressure.
As you would expect, the TD Sequential is a popular piece of technical analysis used to reverse trend trends and find areas of exhaustion. From Ondo’s 3-day chart, the indicator indicates that the prolonged selling pressure is nearing its conclusion and might enable buyers to resume entering the market.
Ondo Crypto Price Struggling to Post Gains
If that sounded promising, it’s only because Ondo Finance hadn’t been able to keep its upward momentum of late. However, the token’s price is trapped in a downtrend at lows of $1.11 from highs of around $2.00.
The bearish candlesticks on the 3-day chart represent sustained selling pressure which has been occurring with this steep decline.
The Ondo market data shows its challenges. Aiming at 10 billion ONDO tokens and a circulating supply of 1.38 billion ONDO tokens, the token is currently valued at a market capitalization of $1.65 billion.
Despite the troubles, Ondo has been attracting interest over the past 24 hours, with a trading volume of $301.44 million. At $11.92 billion, the token’s Fully Diluted Valuation (FDV) maps out what this token could be worth if all tokens were fully diluted.
The 4-hour price chart shows a falling wedge pattern forming, associated with a bullish reversal. This, however, has not broken above key resistance levels, unlocking a powerful upside momentum. The Volume Oscillator of the token is now headed into the negative region, representing a fading interest in the token.
Technical Analysis Supports a Bullish Outlook
This makes a further technical case for recovery with the buy signal of the TD Sequential indicator. However, looking at the Ondo 3-day chart, we see that currently, it is on its appearance. This means its downward momentum might hit some exhaustion, and then the token might rebound.
The falling wedge pattern on the 4-hour chart bears this out. Converging trendlines and decreasing volatility are the hallmarks of falling wedges. These usually signal the beginning of a breakout to the upside. However, a breakout from this pattern for Ondo could have the token break resistance levels at $1.30, $1.50, and ultimately $2.00 in the following weeks.
For Ondo price, the wider market sentiment is cautious optimism. Currently, up 2.07% over the past 24 hours, the token is witnessing a modest recovery but is far from recovering from losses the last few days. Meanwhile, despite the drop in the volume oscillator, the trading volumes are strong, implying that market participants follow the token closely and keenly for news of a breakout.