A whale caught the market’s attention after depositing 6 million ONDO, worth around $2.13 million, into Bybit.
THE transfer comes from a chain of wallets linked to Wintermute, raising concerns that large holders have started distributing tokens in the weak market.
Following the trade, ONDO’s price fell to $0.346, extending losses beyond 7% over the previous 24 hours.
These deposits often increase the available foreign exchange supply and can influence short-term sentiment. However, the transaction represented only one aspect of the broader market picture.
As traders assessed the whale’s intentions, uncertainty grew over whether additional tokens would follow the same path to trading in the coming sessions.
Why do foreign exchange balances continue to decline?
Despite the transfer of whales, data on trade flows continued to tell a different story.
ONDO recorded a net spot flow of approximately -$571.66K, indicating that more tokens left exchanges than entered during the measured period. This trend suggests that many holders continued to move their assets to private wallets rather than preparing them for sale.
Additionally, negative net flows historically reflect reduced FX supply, which may alleviate immediate selling pressure. The contrast between a large deposit and larger capital outflows has created a notable divergence in the market.
While whale activity increased concerns about distribution, exchange balances still indicated continued accumulation behavior among a larger portion of participants.
Can ONDO hold support as bearish pressure builds?
Ondo (ONDO) remained under pressure after failing to sustain its rally above the $0.46 resistance zone.
The daily chart shows that sellers regained control and pushed the price towards the critical support level of $0.34, which marked the upper boundary of a broader demand zone extending to around $0.24.
With ONDO trading at $0.346, buyers faced an important test that could determine whether the recent consolidation structure remains intact.
Technical indicators also reflect weakening conditions.
The Relative Strength Index fell to around 45 and moved below its moving average, showing that buying strength has weakened significantly since the May rally. The combination of the weakening RSI and repeated rejections of resistance suggests that bearish sentiment has strengthened.
However, if buyers successfully defend the $0.34 support zone, ONDO could stabilize and challenge higher resistance levels again.
Bears gain confidence in derivatives markets
Derivatives data revealed increasing bearish conviction as the IO-weighted funding rate fell to around -0.0020%.
Negative funding rates generally indicate that short position holders are now willing to pay for long positions, reflecting stronger bearish expectations.
In this case, the change aligns with ONDO’s withdrawal from resistance and recent whale deposition.
Additionally, funding remained below zero despite larger FX outflows, suggesting that futures traders were more focused on immediate price weakness.
The derivatives market therefore painted a more cautious picture than just the data on spot flows.
If negative funding persists, bearish positioning could continue to influence sentiment.
However, any sudden rebound would increase pressure on newly established short positions.
Can ONDO avoid a deeper correction?
ONDO remained under pressure after a $2.13 million Whales filing coincided with a sharp daily decline.
However, net foreign exchange flows continued to show more withdrawals than deposits, indicating that broader accumulation trends have not disappeared.
Price was near a key support zone while the RSI and funding rates reflected weakening sentiment.
If buyers defend the $0.34 area, ONDO could stabilize and attempt another recovery. Otherwise, sellers could push the asset deeper into its wider demand range.
Final summary
- A deposit of 6 million ONDO whales into Bybit has raised new concerns about potential distribution.
- Net spot flows remained negative, showing more ONDO exchanges exiting than exchanges entering.
