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Will ONDO slide down to $1.05 soon? Assessing major levels
ONDO is experiencing a strong bearish sentiment, with an analyst predicting a drop to $1.05 with a 30% correction.
Since reaching a local high of $2.10 a week ago, Ondo Finance [ONDO] has struggled to maintain its upward momentum. Over this period, the altcoin has declined to $1.47. At present, ONDO is trading at $1.51, marking a decline of 9.55% over the past 24 hours. Additionally, it has dropped by 19.70% on weekly charts.
The recent market condition has led many in the crypto community to forecast further decline. In this regard, popular analyst Ali Martinez has suggested a potential drop to $1.05 citing a head and shoulders pattern.
Market sentiment
Martinez posited that ONDO was forming a head and shoulders pattern at press time. Consequently, if the altcoin closes below $1.48 it may lead to a 30% price correction to approximately $1.05.
For context, the head and shoulders pattern is a bearish reversal pattern that signals a potential price decline after making an upward movement. A drop below the neckline suggests a potential fall equal to the height of the head from the neckline. Therefore, ONDO must find support at $1.86 to invalidate the bearish outlook. If it fails to do so, the altcoin will continue its downward trajectory.
ONDO: An examination of charts
Despite the analysis provided earlier offering a bearish outlook, it is essential to examine other market indicators for insights. As per AMBCrypto’s analysis, ONDO found itself in a corrective phase at the time of writing, with strong bearish sentiments prevailing.
ONDO’s bearishness is demonstrated by the rising exchange-to-flow balance. This implies that more traders are transferring assets into exchanges, either to sell or prepare to sell.
Furthermore, the data from IntoTheBlock reveals large holders’ netflow has decreased significantly over the past days, suggesting increased selling pressure.
Additionally, ONDO’s stock-to-flow ratio has signified oversupply, further supporting our earlier observation of increased inflow to exchanges.
Given that ONDO is over-supplied, it risks additional decline as it generates selling pressure. If present market conditions persist, ONDO will find support at $1.04. However, if the trend reverses, the altcoin will reclaim $1.7 in the short term.
In conclusion, based on the data presented, there are grounds for suggesting that ONDO may indeed drop to $1.05 soon.
Source: ambcrypto.com
