Despite a 50% Drop, ONDO Price Activity and the Imminent Token Unlock Event Point to an Upward Trend

Over the past four weeks, the ONDO price has been in a bearish phase. The token has continued to lose its value. It formed a falling wedge pattern and displays lower low swings.

ONDO crypto has been displaying bearish price action over the past four weeks. With each passing day, the token continued to lose its value. It formed a falling wedge pattern and lower low swings.

Since hitting its All-time-high mark of $2.14, ONDO coin has dragged more than 46%, and bears showed dominance. It slipped below the key EMAs and depicted a selling pressure on the chart.

The ONDO price was trading at $1.15 at press time, noting a decline of over 4.89% in the past 24 hours. Its market cap has dropped to $1.59 Billion, ranked 67th in the overall crypto market.

Despite a more than 50% drop, ONDO price activity and the upcoming token unlock event suggest an uptrend.

Here’s A Look At The Token Unlock Event

The ONDO crypto token unlock event is slated to be realized on January 18th. This will unlock 1.94 billion tokens, which are valued at $2.42 Billion.

Currently, the ONDO coin has 1.38 billion tokens in circulation out of the total supply of 10 billion. This kind of event is usually centered around enabling teams and early investors. Additionally, it targets a segment of the community to purchase, sell, or simply hold onto tokens.

In most cases, this results in a supply shock, and the asset price faces high volatility. However, the token has already factored in the selloff, and a reversal could be seen ahead of the unlock event.

ONDO’s On-Chain Metrics Flashes Bullish Signal

Data from IntotheBlock showed that the daily active addresses have surged over 40% in the past seven days. At the same time, new addresses have soared by over 20%. This pointed toward growing investor interest and demand for the altcoin.

Despite the supply shock, ONDO was expected to recover and bounce due to increased demand and adoption. Ahead of the token unlock event, signs of accumulation were witnessed.

This happened as crypto whales have accumulated 14.20 million tokens worth $16 Million over the past week. This significant accumulation signals that the ONDO price recovery could be imminent.

ONDO Price Analysis: Key Levels To Watch

From a technical perspective, the ONDO crypto has formed a falling wedge pattern. Furthermore, the token was on the edge of the lower support zone near $1.15. However, the chances of a bounce were higher as the token found support at 50% Fib retracement support.

Moreover, the ONDO crypto has completed the retracement cycle, and an emerging 3rd Elliott wave could shape ahead. This could propel a recovery ahead.

The Relative Strength Index (RSI) line was at 34 signals oversold condition. Moreover, a reversal could be seen in the coming days.

Going forward, the OI-weighted funding rate stayed in the negative region, around 0.0099%. That depicted a low demand for long contracts.

The $1.10 support level for the ONDO price needs to be defended by bulls to avoid further selloff. On the other hand, the resistance level of $1.50 needs to be violated for a steady recovery ahead.

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading