Unlock Massive Profits: ONDO's Funding Rate Crash Could Lead to Explosive Gains!

ONDO’s funding rate crash and price action pointed to a possible breakout above $1.60
Technical indicators and institutional interest signaled bullish momentum, despite bearish network activity

As an analyst, I’m observing a unique situation with Ondo [ONDO]. The funding rate has dipped to an unprecedented -60% or more, indicating that exchanges are essentially paying traders to take long positions. This unusual scenario, where traders are compensated for holding a particular asset, is often a sign of significant short interest. When bullish momentum kicks in and sentiment shifts, such high levels of short interest can lead to explosive price movements. In simpler terms, this could mean that Ondo’s price might experience rapid growth if the market becomes more optimistic about its potential.

As we speak, ONDO is being exchanged at $1.22, representing a 3.63% increase from its price 24 hours ago. Could this be the turning point where ONDO soars high, potentially offering substantial profits to its investors?

ONDO’s price action hints at a potential breakout

Examining ONDO’s price movement shows it has been close to around $1.22, slightly under a declining trendline that has limited growth since December. This point is crucial because surpassing it might open up a path for a rise towards the $1.60 resistance level.

Furthermore, ONDO appeared to be shaping a rising floor around the $1.19 level, suggesting a growing interest among buyers. Should bulls manage to propel ONDO over the trendline, this could potentially initiate a significant surge in its price by as much as 80%.

Does the MVRV ratio imply a reversal is near?

In simpler terms, when the MVRM (Market Value Realized vs Market Value) long/short difference was at 35.18%, it suggests that many short-term holders are currently making a profit. Previously, similar high readings have often indicated that a correction might follow as investors decide to cash out their profits.

Yet, this indicator indicates that ONDO’s price is still experiencing selling pressure due to profit-taking. Consequently, the question becomes whether the buyers can maintain their momentum long enough for a turnaround to occur.

Large transactions and growing institutional interest

Over the past day, transactions on ONDO have totaled approximately 182.2 million, and the overall sentiment has become 1.35% positive. This growth indicates a consistent increase in interest, especially when considering that a record 7-day high of 695.18 million ONDO was traded just recently.

Consequently, this buildup might signal that significant market participants could be planning a substantial action. Will the increasing liquidity result in continuous price increase?

Technical indicators signal potential momentum shift

Currently, as I compose this text, the Parabolic SAR indicator is positioned beneath $ONDO’s current price level, which suggests a growing bullish trend. Additionally, the Relative Strength Index (RSI) stands at 42.63, slightly above the oversold region – an indication that $ONDO could potentially be underpriced.

Combined, these signs suggest that there could be an upcoming price change if the buying force keeps growing. Yet, it’s essential to break through significant resistance levels for a clear signal of a bullish trend.

Price DAA divergence raises questions

In the end, there was a significant disparity of 65.66% between ONDO’s price and its daily active users, indicating that the level of network activity didn’t align well with the current price.

Although it might signal an overextension, it also suggests a possibility of increased activity should the current trend reverse. Furthermore, a continued surge in buying power could counteract this discrepancy and drive ONDO towards its next bullish cycle.

Read Ondo Finance’s [ONDO] Price Prediction 2025–2026

Is ONDO ready for a breakout?

From its current measurements at the time of press, as well as its technical signs, it seems likely that ONDO will experience a surge in the near future. The positive trend indicated by the funding rate, substantial trades, and strengthening technical aspects all hint towards this possibility.

If ONDO manages to surpass the $1.60 barrier, it could initiate a significant upward trend. In other words, ONDO might be poised for a possible breakthrough under the condition that buying activity remains strong.

2025-01-17 06:32

Unlock Massive Profits: ONDO’s Funding Rate Crash Could Lead to Explosive Gains!