ONDO’s massive withdrawals continue to reshape supply dynamics without triggering knee-jerk reactions.
A newly created wallet withdrew 41.87 million ONDO, worth approximately $14.34 million, from Coinbase in several tranches.
These tokens are not returned to centralized locations. This behavior indicates an intention to conserve rather than rotate liquidity. Additionally, staggered withdrawals suggest planning rather than urgency.
Similar historical patterns often reflect the long-term strategic positioning of participants. However, withdrawals are not enough to dictate the direction to take. They simply reduce the readily available supply.
As a result, sellers now need stronger conviction to exert sustained pressure. This change subtly alters the market balance while maintaining price stability.
ONDO remains capped inside a descending channel
ONDO price action continues in a multi-month descending channel that has guided the direction of the trend since late 2025. The upper limit repeatedly rejected advances, thereby strengthening active air resistance.
Meanwhile, the lower boundary continues to attract buyers, preventing deeper extensions. Recent upside attempts stopped near $0.38, confirming the presence of sellers.
However, downward moves struggled to extend below $0.33, signaling defensive demand. This tightening range reflects compression rather than rupture.
Additionally, the slope of the channel has flattened slightly, indicating a slowdown in bearish momentum.
However, the structure remains dominant. Until price challenges the channel ceiling with conviction, rallies may remain corrective rather than impulsive.
Source: TradingView
Momentum indicators reflect hesitation rather than exhaustion. The daily RSI continues to hover around 35, remaining below neutral territory.
However, the indicator stopped making lower lows despite repeated testing of support. This behavior often appears during late corrective phases.
Short-term rebounds have recently pushed the RSI towards 60, although sellers quickly limited their momentum. As a result, the RSI oscillates instead of following a trend.
Importantly, RSI has avoided prolonged oversold conditions below 30, signaling restraint from sellers.
However, the dynamic remains fragile. RSI must recover the 45-50 zone to support stronger recovery narratives.
Buy-Takers Continue to Absorb Cash Selling Pressure
CVD of the place taker continues to show longs dominance, especially on the 90-day view, where cumulative delta remains positive. Buyers systematically increase bids instead of waiting for drawdowns.
This behavior contrasts sharply with previous sales phases. However, prices have not increased alongside this aggression. This divergence suggests absorption rather than continuation of momentum.
Sellers respond to demand, but follow-up weakens over time. As absorption continues, the available supply gradually becomes tighter.
Therefore, downward movements lose momentum even without immediate confirmation of the upward movement. Taker behavior signals intent, while structure controls timing.
Source: CryptoQuant
Short liquidations outweigh long positions as downside pressure fades
Liquidation data showed that shorts have absorbed significantly more damage than longs during the recent volatility.
At the time of analysis, total liquidations reached approximately $43,000, with short liquidations accounting for approximately $43,020, compared to only $405 for long liquidations.
Binance alone saw over $42,000 in short-term liquidations, far outpacing long-term losses. This imbalance suggests that bearish positioning developed before prices stabilized.
As short sales unwound, forced repurchases helped absorb selling pressure rather than accelerate declines.
However, the liquidation amount remained modest overall, indicating that debt exposure remained light. Therefore, the market eliminated the bearish excess without triggering a cascade.
Source: CoinGlass
Short-term liquidity builds above current price
THE ONDO Exchange Clearance Card highlighted concentrated short exposure above current levels, particularly between $0.35 and $0.37.
This grouping creates an upward vulnerability. Even a modest push in this area could cause the shorts to cover up quickly.
On the other hand, downside liquidity appears thinner below $0.33, reducing the likelihood of cascading sales.
This imbalance tilts short-term risk against short sellers rather than buyers.
However, liquidity remains dormant until the price approaches these levels. Nonetheless, the chart clearly defines where volatility could accelerate once momentum appears.
Source: CoinGlass
In summary, ONDO is now moving into a phase of preparation rather than weakness. Supply continues to quietly tighten, bearish leverage has already eased and buyers continue to absorb the pressure.
However, the structure still hinders expansion. If participation increases near resistance, upward reactions could accelerate quickly.
Otherwise, consolidation could persist as the positioning matures, delaying resolution but reinforcing the potential directional movement of the market.
Final Thoughts
- ONDO shows signs of quiet accumulation as large withdrawals tighten liquidity supply without disrupting price stability.
- The weakening of bearish momentum and repeated absorption of selling pressure suggests that the market is moving into a positioning phase rather than a distribution phase.
