ONDO Confirmed Falling Wedge Breakout with 4.31% Surge
ONDO confirmed a falling wedge breakout on the daily chart, surging by 4.31% to hit $0.7122 at press time. This pattern can be interpreted as a sign of a potential shift from a downtrend to an uptrend – A sign that ONDO might see a sustained rally. The key question is whether this breakout will continue to drive ONDO’s price higher. Can it set the stage for further gains in the coming days?
Technical Analysis Breakdown
The altcoin’s technical indicators presented a mixed outlook. ONDO’s Relative Strength Index (RSI) had a reading of 62.25, indicating that the asset may be approaching an overbought condition. However, it still seemed to have room for additional growth on the chart. The Moving Average Convergence Divergence (MACD), at press time, was closing in on a bearish crossover. While the chart did suggest there is still time before that happens, a bout of price depreciation might hit the market once it does.
On-Chain Signals
On-chain metrics revealed a slightly bearish sentiment. According to IntoTheBlock, net network growth fell by 1.23% – An indication that fewer participants are joining the ONDO ecosystem. Additionally, concentration dropped by 0.03%, highlighting a lack of significant investment by large holders. Large transactions fell by 2.90% too, which seemed to support the idea of a more cautious approach. The “In the Money” metric remained neutral at 0.01% though, showing that most investors are at a breakeven point right now.
ONDO Liquidation and Long/Short Ratios
Finally, the liquidation charts revealed that $12.08k in short positions were liquidated compared to $3.31k in long positions. This underlined a slight bias towards selling pressure, as per Coinglass data. However, the long/short ratio was fairly balanced at 0.99, with 50.25% short and 49.75% long positions. Therefore, traders seemed to be evenly split on whether ONDO will continue to rise or not.
Conclusively, ONDO’s falling wedge breakout has sparked hope for a bullish rally. However, conflicting technical and on-chain signals suggest traders should remain cautious. While there is potential for sustained upward movement, the current market is evenly split. And, investors should closely monitor key indicators before making significant decisions.
Source : ambcrypto.com