Ondo (ONDO) has been in an uptrend recently. The DTCC news prompted the altcoin to reach highs not seen in almost three months.
Recently, Ondo Finance, in collaboration with JPMorgan’s Kinexys, Mastercard and Ripple, reportedly completed a cross-border takeover of OUSG in near real time. This test transaction was settled in five seconds and took place outside of traditional bank tellers.
Ondo Finance and others were setting the stage for a 24/7 market, and this news also boosted sentiment around the altcoin.
Bitcoin’s (BTC) pullback from $82.8K has seen many altcoins take a step back in recent days, but ONDO has continued to trend upward.
Can the bulls topple $0.413 for support and set new highs, or will this rally falter soon?
Exploring ONDO’s Long-Term Bearish View
In a recent report, AMBCrypto noted that ONDO’s swing structure was bearish over a 1-day time frame. The $0.413 level corresponds to the 78.6% Fibonacci retracement level and could further lead to a bearish price reaction.
As things currently stand, this vision remains possible. The CMF and A/D indicators have signaled strong buying pressure since the breakout of local resistance at $0.28. The bullish momentum has not yet stopped.
Momentum indicators did not signal a bearish divergence on the 4-hour chart. This indicates that the short-term uptrend may extend further, towards $0.413, as shown on the 1-day time frame.
Interestingly, CMF remained neutral after the $0.32 area was flipped towards support.
The liquidation heatmap for the past three months on CoinGlass did not highlight any notable additional liquidity clusters.
This meant that short liquidations did not help fuel the rally beyond $0.35, as most of the short liquidations had already been triggered by that point.
Until the $0.47 high is breached, traders should view the current rally as a relief rally and anticipate rejection of the $0.41 supply zone.
Final Summary
- Ondo did not move back towards $0.30 after breaking through this round resistance, demonstrating remarkable bullish momentum.
- Traders should treat the current rally as a retracement until this view proves false.
