Ondo Finance (ONDO) is close to erasing all July losses. The altcoin rebounded from a $0.37 slide, managed to hold $0.4, and reached a local high of $0.41.
At the time of writing, ONDO was trading around $0.406, after a slight rise of 5.6% on the daily charts. During the same period, the altcoin’s trading volume jumped 55% to $123 million, indicating growing participation in the market.
ONDO Futures Overtakes Spot Amid High Risk Appetite
ONDO’s price rise, while triggered by a change in overall market sentiment, also saw traders show greater demand for leveraged bets. Trader Sarosh noted that ONDO’s Futures business remains larger than zSpot’s. This suggests that traders are willing to take leveraged exposure.
Data from CoinGlass shows this gap in the market. The altcoin’s ONDO Futures volume soared 54% to $285 million, while Spot volume increased 67% to $64.6 million.
This represents a gap of $218 million between Futures and Spot, indicating that the ONDO market is experiencing a high risk appetite.
In this lighttraders deployed significant capital to open new positions. Actually, altcoin derivatives volume jumped 59% to $288 million, while Open Interest increased 6% to $204 million.
The increased volume and OI validate our earlier observations of intense demand for leveraged positions. Over the past day, for example, the altcoin’s Spot volume fell into the negative zone after remaining positive for two days.
At press time, Spot net flow fell to -$929,000, implying that volume is primarily dominated by buyers.
What’s next for the altcoin?
ONDO is currently experiencing strong market demand with traders demonstrating a high risk appetite. As a result, the altcoin’s relative strength index (RSI) jumped to 63, suggesting strong buying pressure.
The ADX-DI indicator further validates these market conditions. The positive index rose to 34 while the ADX climbed to 25.
With the ADX and +DI increasing in tandem, it showed stronger bullish momentum and the likelihood of a continuation of the trend.
Therefore, if demand, especially on futures, continues to increase while spot also increases to keep pace, ONDO will make more gains.
In doing so, the altcoin will aim to topple the $0.45 resistance. To maintain this bullish outlook, ONDO needs a daily close above $0.4, and otherwise, the $0.35 support will be retested.
Final summary
- ONDO rebounded from a slide of $0.37, managed to hold $0.4 and hit a local high of $0.41.
- Traders showed a high risk appetite, with futures volume at $285 million, while spot volume lagged at $64 million.
