ONDO’s chart has formed a descending wedge pattern, which could trigger a 50% bounce. Most indicators and market signals appear optimistic.
ONDO bears continued to dominate the market last week as its price chart remained in the red. However, investors must exercise patience as there may be some factors that could lead to a significant bull market in the coming days. Let’s take a look at what has been happening.
Latest bullish moves for ONDO
Data from CoinMarketCap shows that ONDO experienced a significant price drop on June 24. It did manage to bounce back, but the price still fell by over 4% last week, unable to fully recover.
At the time of writing, the token is trading at $1.16 with a market capitalization of over $1.6 billion.
Research from AMBCrypto on IntoTheBlock data reveals that long-term holders of ONDO, who have held the token for a year, have been consistently selling off.
On the other hand, cruisers, who have held the token for less than a year, have shown great interest as their numbers increase.
However, with a bull market appearing on the token’s chart, long-term holders’ interest in ONDO may also surge.
Popular cryptocurrency analyst Captain Faibik recently tweeted about a descending wedge pattern, emphasizing its significance. The token’s price has been consolidating within this pattern since early June, and at the time of writing, it is on the verge of a breakout.
A successful breakout could result in a price surge of over 50%. Interestingly, a similar pattern appeared on the token’s chart as early as March. ONDO broke out of this pattern in April, triggering the rebound that ended in early June.
Will ONDO test the bull market pattern?
Considering the possibility of another bull market, AMBCrypto evaluated Santiment’s data.
Based on our analysis, the token’s supply has decreased alongside the price drop, which can be interpreted as a bullish signal. The token’s MVRV ratio has also increased over the past few days.
Furthermore, public interest in the token has declined. Whenever this indicator drops, it suggests a high likelihood of a change in the current price trend.
However, ONDO’s NVT ratio has risen, indicating that the token is overvalued and implying that the price will continue to decline.
Next, we examined the token’s daily chart to see if the indicators also suggest a price increase. The MACD technical indicator indicates a high possibility of a bullish crossover.
The Chaikin Money Flow (CMF) has slightly risen, indicating a potential price increase.
However, the Relative Strength Index (RSI) is moving sideways at the neutral point. This suggests that there may be a few days of slow movement.