ONDO Crypto Surges 56%, Eyes Further 15% Gain
In A Nutshell
The cryptocurrency ONDO has showcased impressive performance with a 56% gain since May 23rd. Technical analysis suggests a further potential rally of 15%, contingent upon certain conditions being met, including converting a key resistance level into support. This article delves into the factors contributing to ONDO’s bullish outlook.
Technical Indicators Point to Continued Uptrend
ONDO’s price action has been positive, breaking out from a two-month range and turning the psychological $1 level into a supportive base. Technical analysis using Fibonacci retracement and extension levels indicates that after finding support at $0.717, ONDO has moved past significant resistance levels. Currently, the cryptocurrency aims to breach the 61.8% extension level at $1.46, with a target set at the 100% extension level at $1.71.
The Relative Strength Index (RSI) on the daily chart stands at 76, signaling strong bullish momentum without any signs of divergence. However, the On-Balance Volume (OBV) suggests that while the market’s trading volume is modest, the overall price action remains bullish.
Market Sentiment and Speculative Interest Fuel Rally
Data from Coinalyze indicates that Open Interest in ONDO has been moving in tandem with its price, suggesting that traders are maintaining a bullish stance and are inclined to initiate long positions as the currency appreciates. Additionally, the spot Cumulative Volume Delta (CVD) continues its upward trajectory, albeit at a slower pace in recent days. The market has also witnessed short liquidations due to the price surge, contributing to the buying pressure in the lower timeframes.
Our Take
ONDO’s recent performance and technical analysis present a compelling case for its potential to continue this upward trajectory. The convergence of strong technical indicators, supportive market sentiment, and speculative interest positions ONDO for further gains. However, investors should remain cautious, as the cryptocurrency market is inherently volatile and subject to rapid changes. The ability of the bulls to convert key resistance levels into support will be crucial in sustaining this rally. As always, it’s advisable for investors to conduct their research and consider their risk tolerance before making investment decisions.
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The analysis provided herein is based on the technical assessment and market data available at the time of writing. It does not constitute investment advice.
