Ondo Finance (ONDO) Price Forecast, Jan. 13: Ondo’s Price Tumbles Ahead of 134% Token Supply Surge—Can It Recover?

Ondo’s price keeps drifting lower, sitting at $1.16 on Monday. This follows a sharp 21% drop last week, putting traders on edge.

The Ondo Foundation announced a major event set for January 18. A 20% token unlock will boost the circulating supply by a staggering 134%.

The sudden increase in supply has traders worried about selling pressure. If many holders cash out, it could drive prices down further.

Bearish Signals from Market Sentiment

Market data shows bearish signals stacking up. The funding rate for ONDO futures sits at -0.047%, meaning short sellers are paying longs.

This negative funding rate suggests traders expect further declines. It’s a clear sign the market mood is far from upbeat.

On-Chain Data Shows Declining Interest

On-chain activity adds to the gloomy outlook. Daily active addresses on Ondo’s network dropped to 1,929 on Monday, down from 3,691 in mid-December, Santiment’s Daily Active Addresses index revealed.

Less activity often means less demand. For Ondo, this trend has been worsening since early December.

Technical indicators don’t paint a brighter picture, either. Ondo’s Relative Strength Index (RSI) is dangling near oversold territory at 38.98.

Meanwhile, its 50-day moving average is well above the current price at $1.49. This signals the token is stuck in a bearish trend for now.

A 36.66% Updive In View for ONDO

Still, some analysts see better days ahead in the short term. Predictions suggest ONDO could climb to $1.49 by January 18.

That would be a 32.66% jump from today’s price. But with a 25.98% slump over the past week, skepticism lingers.

Farther down, projections are more pumped. By February 2025, ONDO could rise to $3.76, a 228% increase if market conditions improve.

For now, though, market sentiment remains feeble. The Fear & Greed Index sits at 61, showing moderate greed, but the token has only seen 9 green days in the last month.

Volatility is also a factor to watch, with ONDO showing a 14.38% fluctuation rate. This adds another layer of risk for traders and investors.

As the January 18 token unlock approaches, all eyes are on Ondo. How the market absorbs the extra supply will be key in determining its next play.

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