Despite significant institutional interest in ONDOfinancing, market participants are divided on whether it is a possible bearish signal. Despite the price rally, recent selling has raised concerns about a potential pullback.
According to COINOTAG, “The market is currently in a struggle between institutions accumulating on one side and investors opening short positions on the other.” Binance, the world’s largest cryptocurrency exchange, has purchased $596,415.56 worth of ONDO over the past five days, equivalent to 174.22 ETH. These transactions were carried out in two separate transfers via Binance’s hot and cold wallets, bringing the total to 571,827 ONDO tokens.
Large-scale buying usually indicates growing institutional interest and big players positioning for a rally. However, a closer look at the situation reveals a contradictory picture: While institutions are accumulating, derivatives investors are actively selling, indicating a split in market sentiment.
At the time of writing, the market is negative, which contradicts the positive trend created by large-scale accumulation. The OI-Weighted Funding Rate provides a clearer picture of market sentiment, as it is an indicator where the Funding Rate is balanced by the Open Interest (OI). A positive rate indicates a bull market with a dominant long position, while a negative rate indicates a bear market with increasing short positions.
At press time, ONDO’s Funding Rate has been falling steadily and has entered negative territory with a reading of 0.0251%. This is an indication of increasing downside pressure. Long position liquidation data shows that long positions are in a difficult position, which is out of sync with the accumulation trends of large investors in the market, and this could create further downside pressure. A total of $538,610 worth of long positions have been forcibly liquidated, suggesting that ONDO’s price could fall further.
