ONDO Plunges 18% as Rally Loses Steam

Ondo Finance (ONDO), which is primarily active in the real-world asset RWA space, went through a volatile trading session by surging nearly 20% before losing all gains within a short span of 24 hours. The drop of 18% raises concerns for ONDO on the short-term trajectory, with many technical indicators showing that momentum is fast slowing down and whale activity is on the decline. 

Start of RSI Cooling Momentum

Technical analysis indicates that the Relative Strength Index, or RSI of ONDO, soared to 76.1 during its uptrend before ebbing down to under 54.8 on the downtrend. The RSI is a momentum oscillator that can have values from 0 to 100. When it closes above 70, it indicates overbought conditions, and if it closes below 30, it indicates oversold conditions. A high RSI is normally interpreted by traders as a signal for expecting a pullback, as witnessed in ONDO’s sudden correction.

With RSI yet at 50, ONDO is right in the neutral zone, implying stabilization of buying pressure. Should RSI remain above 50, ONDO will be able to maintain its bullish structure and stage a new rally. Should it slip below 40, falling momentum would further compound downside pressure on the asset. 

Whaling activity Recedes After Steady Accumulation

A key factor influencing the price fluctuations of ONDO is whale activity, large holders controlling between 1 million and 10 million ONDO tokens. So, from February 17 to March 1, the number of whale wallets had increased from 203 to 221, indicating great accumulation. Nevertheless, the recent data showed that it had decreased to 214 for the first time in over two weeks.

An increase in whale activities usually indicates long-term confidence, while a decrease usually indicates selling pressure. Nevertheless, selling pressure remains high with the whale activity, thus the confidence in ONDO by a wide array of investors. If there is a continued decline in the number of whales, we might see further corrections. In the alternative, renewed accumulation might give the signal for recovery towards higher prices. 

ONDO’s price movement is determined by macroeconomic variables and the market’s state of mind. The regulatory scope of the authorities toward RWAs can leverage the bull run in market momentum coming into ONDO. We could expect ONDO’s potential inclusion in the US strategic crypto reserve to act as another trigger for future growth.

Conclusion

ONDO’s most recent price fluctuations demonstrate that crypto markets are just a world of their own and are unpredictable. Though ONDO is one of the better performers in the RWA sector, the technical indicators show consolidation. Investors should watch the RSI levels, whale activity, and critical support zones to determine the next move in ONDO. It should always be noted that things could change quickly in the market; research is important before making an investment decision.