Ondo (ONDO) is up 1.58% in a day and 21% over the past week as the Real World Assets (RWA) platform token breached key resistance at $0.297.
Moreover, the psychological level of $0.30 has served as a resistance zone since February 14.
The altcoin formed a range between $0.25 and $0.30 and finally reached a decisive bullish breakout on Monday, May 4.
The price movement came after the announcement in an article on X that Ondo had been selected to the DTCC industry working group to “advance tokenization in the United States.” The idea was to create a tokenization service that would bring the heart of American capital markets online.
Evaluate the potential of ONDO price trends
Ondo’s growth over the past two years has been extremely bullish for investors with a time horizon of a few years. In fact, the recent announcement sparked a short-term rally, but technical analysis indicated that the one-day time frame retained a bearish bias.
Additionally, the most recent breakout of the swing structure occurred in January (orange). Based on the ensuing downtrend, a set of Fibonacci retracement levels were drawn.
It showed that the breakout beyond $0.30 can push prices up to $0.413 or even reach the highs of $0.47. However, until the $0.47 high is breached, the swing structure would be bearish.
Therefore, traders can be optimistic in the short term, but should not hesitate to take profits.
Trader Call to Action – Look to Buy the New Test
The structure was bullish, the range was breached and ONDO’s momentum could weaken in the short term and lead to a pullback. The Fibonacci retracement levels highlighted the $0.286 to $0.295 area as a golden pocket.
A fall into this territory would present a buying opportunity. Invalidation would constitute a continued fall below the H4 timeframe low of $0.275.
Traders should also prepare for the possibility that ONDO reacts strongly from the 50% retracement level at $0.30.
Final Summary
- Ondo was selected by the DTCC Industry Working Group to advance tokenization in the United States.
- The announcement triggered a rally beyond price highs that have held since February 14.
