ONDO hits ATH as MVRV signals local top – Is $2 on the cards?

ONDO has created a new all-time high at $1.78 after a 37% gain in 24 hours.
ONDO’s MVRV ratio at 7.06 suggests that the altcoin may have reached a local top.

As a seasoned crypto investor with a decade of experience under my belt, I’ve seen my fair share of market fluctuations and trends. The recent surge in ONDO, a Real World Asset token, has caught my attention, especially after it hit an all-time high at $1.78 following a 37% gain within 24 hours. While the rising buying activity is impressive, the MVRV ratio of 7.06 suggests that this altcoin may have reached a local top.

At the moment, Real World Asset (RWA) tokens were among the leading performers as their total market capitalization surged from $51 billion to $63 billion over a 24-hour period. Specifically, Ondo [ONDO], one of the top five RWA tokens by market cap, experienced significant growth, rising by 37% within the same timeframe and trading at $1.66.

On December 3rd, ONDO peaked at $1.78 due to a rally fueled by increased purchasing activity. This spike is evident in the token’s one-day graph where the Relative Strength Index (RSI) climbed above the overbought threshold of 84.

Since early November, there’s been a progressive increase in the Relative Strength Index (RSI), indicating that traders have been steadily buying into ONDO. But since the RSI has surpassed overbought territory, it’s possible that ONDO may experience a short-term correction soon.

The Average Directional Index (ADX) is pointing upward too, suggesting a robust uptrend. This suggests that the token might continue to increase in value.

Should ONDO consistently reach new peak values, the anticipated price point for its next ascent could be the 1.618 Fibonacci level, which approximates to around $2.05.

Whale activity surges

Activity involving whales around ONDO is escalating once more following a dip observed over the weekend. According to IntoTheBlock’s data, the number of large transactions surpassing $100,000 skyrocketed by approximately 200% within a 24-hour period, rising from 13.73 million to 42.28 million.

Over 80% of the tokens in circulation with ONDO are owned by whales. This means that if these substantial investors start trading more frequently, there’s a strong likelihood that the token’s price will experience greater fluctuations.

ONDO’s MVRV ratio hits a 3-month high

As a researcher examining ONDO’s Market Value to Realized Value (MVRV) ratio, I’ve noticed an upward trajectory over time, with the latest reading reaching 7.06 – the highest it’s been in the past three months. This MVRV ratio suggests that ONDO’s market value is seven times greater than its realized value, implying a potential overvaluation scenario.

Based on historical patterns, a growing MVRM ratio in ONDO tends to align with positive price movements. This increase might indicate increased investor enthusiasm, which could bolster the ongoing upward trend.

Open interest hits record highs

Another positive indicator for ONDO is the increase in open interest and substantial trading activity observed in the futures market. Currently, open interest stands at approximately $285 million, representing a 41% surge over the past 24 hours.

The surge in available positions on ONDO indicates a significant increase, with new openings exceeding 400% according to Coinglass, as trading volumes in the derivatives market have soared.

Read Ondo’s [ONDO] Price Prediction 2024–2025

It also shows high market participation that could boost liquidity.

Positive indicators suggest that ONDO might continue climbing to new peak prices. But, keep an eye on potential market saturation as the Relative Strength Index (RSI) is overextended and the Market Value to Realized Value (MVRV) ratio is elevated, which could signal a possible market cooling off.

2024-12-04 03:03

Whale activity surges

ONDO’s MVRV ratio hits a 3-month high

Open interest hits record highs

Read More