- A higher number of addresses held ONDO at a loss at $1..23, suggesting that price could fall again.
Network activity and open interest decrease, hence, the price could drop to $1.15.
As a seasoned crypto investor with several years of experience under my belt, I’ve learned to read between the lines when it comes to cryptocurrency market analysis. The recent price decrease of ONDO from its all-time high and the current market indicators are raising some red flags for me.
Following a peak on June 3rd, Ondo’s [ONDO] price has experienced a decline of 7.11% within the past 24 hours. Currently, ONDO is priced at $1.22. This downward trend might be attributed to token sellers cashing in their profits.
Despite ONDO‘s price decrease being a recurring pattern in the past, this analysis will concentrate on forecasting its short-term price movements.
Initially, AMBCrypto examined the Indicator of Money Flow At Price (OIMAP). This insight comes from the analytical tools offered by blockchain platforms.
No way out of the decline
As a researcher studying the crypto market, I’d describe the IOMAP (Island Mode Analysis Platform) as a valuable tool that offers insights into the distribution of addresses based on their profit or loss status with respect to a specific cryptocurrency. It provides an estimate of the quantity of addresses where the tokens are being held at a loss and those holding them in profit. Furthermore, it approximates the average purchase price for each group, enabling us to gain a better understanding of the market dynamics and sentiment.
As an analyst, I would interpret this scenario by saying that when a substantial number of addresses are showing profits and outnumber those with losses, the current price level might serve as a support. Consequently, it may be challenging for the price to decline significantly due to this buying pressure. Conversely, if more addresses exhibit losses than profits, the average purchase price for these addresses could function as resistance, making it harder for the price to rise above that level.
At the time of publication, approximately 2,000 different addresses had transacted to acquire a total of 76.5 million ONDO tokens, with an average purchase price of around $1.20 per token. Conversely, roughly 2,660 distinct addresses had bought 36.16 million ONDO tokens, resulting in an average transaction price of about $1.23 per token.
Although purchasing additional tokens at a lower price, the resistance level at $1.23 may cause ONDO‘s price to decrease due to the greater concentration of wallets at this price point.
Should that event transpire, the estimated price of ONDO could dip down to $1.15 in the near future. An additional indicator pointing towards this possible price drop is the declining number of active addresses.
Watch out ! $1.15 wants to appear
The number of active addresses on a blockchain represents the quantity of users engaging in transactions. A rise in this figure signifies heightened user engagement and transaction activity. Conversely, a decline suggests that fewer users are participating in transactions.
Based on AMBCrypto’s observation, when there is an uptick in network activity for ONDO, its price tends to rise. However, currently, the number of active addresses in the last 24 hours has dropped to 1370. Given this correlation between the metric and the token’s price, it seems that ONDO may be due for another price decrease.
As a researcher investigating the dynamics of cryptocurrency markets, I explore various metrics to gain insights into the sentiment surrounding different projects. In addition to monitoring network activity, I also analyze the Weighted Sentiment of a project. By evaluating the social volume of online comments, this metric provides an indication of the community’s perception towards a particular project. A positive reading of the Weighted Sentiment suggests that the overall sentiment is bullish.
In other words, if the current trend of negative comments continues, it’s likely that ONDO‘s price will decrease. At present, the sentiment towards ONDO is negative based on our observation.
As a crypto investor, I’ve noticed that the Open Interest (OI) didn’t show any improvement recently. A rise in OI would be a sign of heightened speculative activity. If such a scenario had unfolded, ONDO might have been on its way to recovery.
Realistic or not, here’s ONDO’s market cap in ETH terms
At the moment of reporting, the On-chain Indicator had dropped to $121.17 million. This signifies a possible reduction in the inflow of liquidity for the token if this trend continues.
Therefore, ONDO’s price prediction in the short could be a decline $1.15 as mentioned earlier.
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2024-06-21 22:15