Market Movement: ONDO Token Experiences Significant Price Growth and Warning Signals Emerge

ONDO Price Surges 1.36% as Technical Indicators Flash Overbought Warning

The Ondo (ONDO) token has seen a remarkable price surge, with a gain of 1.36% over the past 24 hours, reaching a new high of $1.07. However, this explosive growth has raised concerns among analysts and traders, as multiple technical indicators are flashing overbought warnings.

The Relative Strength Index (RSI) is currently at an alarming 74.89, indicating that ONDO may be due for a short-term correction. Historically, such extreme readings have been met with significant pullbacks or consolidations. This warning should not deter long-term investors seeking exposure to the growing real-world asset (RWA) tokenization market.

Despite this red flag, the broader technical picture remains extremely bullish. The MACD indicator is displaying a robust momentum, with the main line trading above the signal line and a bullish histogram reading of 0.0195. This combination suggests that the uptrend could continue beyond current levels if the RSI rebalances through natural market forces.

Stochastic oscillator also indicates that ONDO may be due for short-term consolidation or correction as %K reaches 84.32 and %D at 85.32, both signaling potential short-term pullback.

In light of these technical signals, traders should exercise caution over the next 48 hours. The key resistance level to watch is $1.13, a decisive break could extend gains despite overbought warnings, while rejection may trigger the anticipated technical correction towards Ondo support levels.

As always, position sizing becomes critical at this juncture. Recommended risk management practices include keeping exposure under 2-3% of portfolio value considering elevated technical risks.

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Source: Blockchain.News