ONDO struggles to reach $2: Why $1.20 is a key level now

ONDO’s price declined by more than 7% in the last 24 hours.
Most metrics hinted at a continued price decline.

As a seasoned crypto investor, I have seen my fair share of bull rallies and bear markets. ONDO’s recent price surge had me intrigued, with its massive gains and increasing demand. However, the sudden 7% drop in price over the last 24 hours has left me concerned.

In the past few weeks, ONDO has generated significant excitement due to its impressive price increase. Some investors are even predicting that ONDO could reach the $2 mark soon based on this strong market momentum.

However, the bears stepped by in the last 24 hours and pushed the token price down.

ONDO’s demand is surging

Recently, Santiment drew attention to ONDO’s sustained popularity on Twitter. One significant factor fueling this trend might be its impressive 75% price increase over the past eleven days.

While the token gained bullish momentum, investors used the opportunity to scoop up ONDO.

As a data analyst examining Santiment’s tweet, I found that the cryptocurrency token in question had approximately 5,000 unique wallets holding non-zero balances on the 26th of February.

As the demand to purchase the token grew, the number of its wallets containing a balance surpassed 33,225, marking an increase of over 550% compared to the previous figure.

Based on AMBCrypto’s assessment, there was robust demand for the token as indicated by a significant increase in purchasing activity last week. This was further evidenced by a noticeable surge in token transfers from exchanges.

The amount of this asset available for trading on exchanges decreased significantly over the past few days, while the supply not connected to exchanges grew. This trend suggests strong demand and buyer interest.

Additionally, the supply held by top addresses also increased slightly over the last week.

ONDO struggles to reach $2: Why $1.20 is a key level now

Is ONDO’s bull rally ending?

During the interim, well-known cryptocurrency analyst Crypto Patel shared an assessment implying ONDO’s price could surpass $2 in the near future. Nevertheless, the token encountered some resistance.

Based on data from CoinMarketCap, the token’s price has decreased by more than 7% in just the past 24 hours. Currently, the token is being bought and sold at a price of $1.20, and its market capitalization exceeds $1.66 billion.

As a crypto investor, I’ve noticed that the price of the token has taken a downturn recently. However, intriguingly enough, its NVT ratio has seen a significant surge during this period. For those unfamiliar with the term, NVT stands for Network Value to Transactions Ratio, which is a popular valuation metric in crypto. An increase in this ratio implies that an asset might be overvalued based on the current market conditions. So, while I’m not thrilled about the price drop, I’ll keep a close eye on this developing situation.

Based on recent trends, ONDO’s downward price movement may persist, making it unlikely for the stock to reach the $2 mark in the near future.

Another bearish metric was the MVRV ratio, which dropped after spiking on the 25th of May.

ONDO struggles to reach $2: Why $1.20 is a key level now

Realistic or not, here’s ONDO’s market cap in ETH’s terms

Based on our assessment of ONDO’s daily price action, if the downtrend persists, the token could potentially hit a low of $1.14. At that point, ONDO might present a buying opportunity for those looking to enter or add to their positions.

As an analyst, I would interpret the current situation as follows: Should ONDO’s price dip below my assessment, it may reach a level as low as $0.97. However, if the market sentiment shifts and ONDO’s chart colors transform back to green, then it is essential for the price to surpass its resistance at $1.24 in order to maintain its upward momentum.

2024-05-27 17:12

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