ONDO Will Drop to $1.05 Soon? Evaluating Key Levels
2 min read
ONDO is experiencing strong bearish sentiment, with analysts looking for a drop to $1.05 with a 30% retracement.
Posted: December 26, 2024
By: Gladys McKenna
Harrah: Seman Waris
Will ONDO Slide to $1.05 Soon? Evaluating Key Levels
ONDO is down 9.55% in the last 24 hours.
With strong bearish sentiment, the analyst expects a drop to $1.05.
Since hitting a local high of $2.1 a week ago, Ondo Finance (ONDO) has struggled to maintain its upward momentum.
During this period, Alcoin dropped to $1.47. In fact, as of this writing, ONDO is trading at $1.51. This has seen a 9.55% drop in the past 24 hours. Similarly, Alcoin is down 19.70% on the weekly charts.
The recent market condition has left the crypto community predicting further declines. To some extent, popular crypto analyst Ali Martinez suggested a potential drop to $1.05, pointing to a head and shoulders pattern.
Market sentiment
In his analysis, Martinez assumed that ONDO was forming a head and shoulders pattern at press time. Therefore, if Alcoin closes below $1.48, it could lead to a 30% price correction to around $1.05.
Source: X
For context, the head and shoulders pattern is a bearish reversal pattern that indicates a potential decline in prices after an upward move.
A price drop below the neckline indicates a potential decline equal to the height of the head from the neckline.
Therefore, ONDO must claim $1.86 as support to invalidate the bearish outlook. If it fails to do so, Alcoin will continue to decline.
ONDO: A Look at the Charts
Although the above analysis presented a bearish outlook, it is necessary to determine what other market indicators suggest.
According to AMBCrypto analysis, ONDO was in a corrective phase at press time, with strong bearish sentiment.
Source: Santiment
The ONDO bearishness is manifested by a rising inflow-outflow balance. This means that more traders are moving more assets to exchanges, either to sell or to prepare to sell.
Source: IntoTheBlockBinance
This inflow to exchanges is more prevalent among large holders. According to IntoTheBlock, net inflow of holders’ has fallen to -3.52 million over the past week.
This indicates that there are more outflows of whales, compared to inflows.
Source: Santiment
Additionally, ONDO's NVT ratio has been rising with trading volume over the past few days, raising concerns about overvaluation.
This shows less engagement with the network, with fewer transactions, fewer active addresses, and overall network usage.
Source: Santiment
Finally, the altcoin stock-to-flow ratio indicated an increase in supply, supporting our previous observation of increased flow to exchanges.
Read Ondo Finance [ONDO] Price Prediction 2025 – 2026
With ONDO oversupplied, it risks further decline as it causes selling pressure.
If the current market conditions persist, ONDO will find support around $1.04. However, if the trend reverses, Alcoin will reclaim $1.7 in the short term.