ONDO’s demand has risen sharply over the past few weeks, but bears have now entered the game.
- ONDO’s price declined by more than 7% in the last 24 hours. Most metrics hinted at a continued price decline.
ONDO has been creating a lot of buzz in the recent past as it has registered massive price gains. The bull rally sparked speculation among investors about ONDO touching $2 in the coming days.
However, the bears stepped by in the last 24 hours and pushed the token price down.
ONDO’s demand is surging
Santiment recently posted a tweet highlighting the fact that ONDO has been trending for quite some time. A major reason behind this could be its 75% price rise in just eleven days.
While the token gained bullish momentum, investors used the opportunity to scoop up ONDO.
Santiment’s tweet mentioned that the token only had just over 5k non-empty wallets on the 26th of February.
However, as buying pressure increased, the token’s non-empty wallets reached 33,225, which was a hike of more than 550%.
AMBCrypto’s analysis revealed that buying pressure on the token remained high. Its Exchange Outflow spiked last week.
Its Supply on Exchange dropped sharply, while its Supply outside of Exchanges increased in the last few days. This further indicated high buying pressure.
Additionally, the supply held by top addresses also increased slightly over the last week.
Source: Santiment
Is ONDO’s bull rally ending?
In the meantime, Crypto Patel, a popular crypto analyst, posted an analysis that suggested that ONDO’s price might cross $2 in the coming days. However, the token hit a roadblock.
According to CoinMarketCap, the token’s price dropped by over 7% in the last 24 hours alone. At the time of writing, the token was trading at $1.20 with a market capitalization of over $1.66 billion.
While the token’s price dropped, its NVT ratio registered a sharp uptick. A rise in the metric means that an asset is overvalued.
This indicated that ONDO’s declining price action might continue further, which can restrict it from touching $2 anytime soon.
Another bearish metric was the MVRV ratio, which dropped after spiking on the 25th of May.
Source: Santiment
Realistic or not, here’s ONDO’s market cap in ETH’s terms
As per our analysis of the token’s daily chart, if the price drop continued, then the token might plummet to $1.14. From there, ONDO will have an opportunity to bounce back.
A fall below that could push its price down to $0.97. However, if the trend changes once again and ONDO’s charts turn green, then it must go above its resistance at $1.24 in order to sustain the rally.
Source: TradingView
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