ONDO recently made headlines after extending its uptrend with significant gains of 10% over a 24-hour period.
The altcoin’s price action gained momentum after the network announced that perpetual traders can now use tokenized stocks as collateral. The move aims to expand the range of assets available for leveraged trading.
The impact of the announcement was instantaneous. ONDOs The price extended its gains on the daily chart, adding to an uptrend that had already been developing over the past few weeks.
The escape came before the news
Before the announcement, ONDO had just managed to free itself from a bullish pennant which acted as a price cap during the consolidation phase. His last The breakout regained momentum in favor of the bulls and reaffirmed the prevailing uptrend that has remained intact since the token found support at the $0.30 price level.
The aggressive breakout resulted in a market gap between $0.32 and $0.36, which was filled and the uptrend continued.
Simply put, the recent announcement reinforced the altcoin’s bullish bias. Especially since ONDO’s price action has respected the bullish fair value gap.
At the time of writing, ONDO was still trading above the 20-day simple moving average. The divergence of the Bollinger bands has also widened, suggesting greater volatility in the market.
Whales continue to strengthen their positions
According to AMBCrypto’s recent analysis of average spot order size data, large ONDO holders have shown few signs of exiting.
In fact, on-chain data indicated an increase in whale order accumulation around ONDO’s press time price, even after the breakout. This implied that long-term game players were still positive about the long-term bullish market structure.
In previous scenarios, persistent accumulation during a trending market gave the trend more room to expand.
For ONDO, the same scenario could come into play and reinforce the current market bias.
Is $0.50 the next hurdle?
The long-term technical structure of the altcoin has remained constructive thus far. By continuing to trade above key support levels established after the pennant breakout, ONDO preserved the highest highs and lows.
The next major area that traders and investors are watching is near $0.50. This is a psychological level that could attract both profit-taking and new buying interest.
The presence of several liquidity clusters worth over $5 million above $0.45 appears to confirm the market bias. ONDO price action could further rally to chase full liquidity.
Final summary
- ONDO’s price gained momentum after tokenized shares became available as collateral for perpetual transactions.
- Whale accumulation continued to follow the breakout of a bullish pennant, leaving the psychological $0.50 level as the next major target for buyers.
