ONDO’s chart has formed a descending wedge pattern, which could trigger a 50% rebound. Most indicators and market signals look optimistic.
Last week, ONDO bears continued to dominate the market as its price chart remained in the red. However, investors must be patient as there might be some factors that could lead to a large-scale bull market in the coming days. Let’s take a look at what has been happening.
Latest bullish moves for ONDO
Data from CoinMarketCap shows that ONDO experienced a significant price drop on June 24. It did recover later, but due to the price decline of over 4% last week, it couldn’t fully bounce back.
At the time of writing, the token’s trading price is $1.16, with a market cap exceeding $1.6 billion.
Research from AMBCrypto on IntoTheBlock data indicates that long-term holders of ONDO, who have held the token for a year, have been consistently reducing their holdings.
On the other hand, cruisers who have held the token for less than a year have shown great interest as the quantity increases.
However, with the appearance of a bull market on the token’s chart, the interest in ONDO from long-term holders may also surge.
Popular cryptocurrency analyst Captain Faibik recently tweeted about a descending wedge pattern. Since early June, the token’s price has been consolidating within this pattern, and at the time of writing, it is on the verge of a breakout.
A successful breakout could lead to a price surge of over 50%. Interestingly, a similar pattern appeared on the token’s chart back in March. ONDO broke out of this pattern in April, triggering the rebound that ended in early June.
Will ONDO test the bull market pattern?
As the possibility of another bull market arises, AMBCrypto evaluated Santiment’s data.
Based on our analysis, the token’s supply has been decreasing alongside the price drop, which can be inferred as a bullish signal. The token’s MVRV ratio has also increased in the past few days.
Furthermore, public interest in the token has declined. Whenever this indicator drops, it suggests a high likelihood of a change in the current price trend.
Nevertheless, ONDO’s NVT ratio has risen, indicating that the token is overvalued and implying that the price will continue to decline.
Next, we looked at the token’s daily chart to see if indicators also suggest a price increase. The MACD technical indicator shows a high possibility of a bullish crossover.
The Chaikin Money Flow (CMF) has slightly increased, indicating a potential price rise.
However, the Relative Strength Index (RSI) is moving sideways around the neutral point, implying that there might be a few days of slow movement.
