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Ondo [$ONDO] was up 1.58% in a day and 21% over the past week as the real-world asset (RWA) platform token breached a key resistance at $0.297.
By the way, the $0.30 psychological level had served as a resistance zone since the 14th of February.
The altcoin formed a range between $0.25-$0.30, and finally achieved a decisive bullish breakout on Monday, the 4th of May.
Price move came after the announcement in a post on X that Ondo had been selected in the DTCC’s Working Industry Group to “advance tokenization in the U.S.”. It was building a tokenization service that would bring the core of U.S. capital markets onchain.
Assessing the potential of $ONDO price trends
The growth of Ondo in the past two years was extremely bullish for investors with a time horizon of a few years. In fact, the recent announcement sparked a short-term rally, but technical analysis indicated the 1-day timeframe retained a bearish bias.
Moreover, the most recent swing structure break came in January (orange). Based on the downtrend from then, a set of Fibonacci retracement levels was plotted.
It showed that the breakout past $0.30 can take prices as high as $0.413 or even a sweep of the $0.47 highs. However, until the $0.47 high is broken, the swing structure would be bearish.
Therefore, traders can be bullish in the short-term, but shouldn’t hesitate to take profits.
Traders’ call to action- Look to buy the retest
The structure was bullish, the range has been breached, and $ONDO’s momentum might flag in the short-term and lead to a pullback. The Fibonacci retracement levels highlighted the $0.286-$0.295 area as the golden pocket.
A drop into this territory would present a buying opportunity. Invalidation would be a continued plunge below the $0.275 swing low on the H4 timeframe.
Traders should also be prepared for the possibility that $ONDO reacts strongly from the 50% retracement level at $0.30.
Final Summary
- Ondo was chosen in the DTCC’s Industry Working Group to advance tokenization in the U.S.
- The announcement sparked a rally beyond price highs that have held since the 14th of February.