Ondo Finance (ONDO) Price Prediction 2023 — Will ONDO Recover?

Since its peak in December, Ondo [ONDO] has corrected by nearly 50%, leading to a current trading price of $1.18, reflecting a 3.09% increase

After peaking in December, Ondo Finance [ONDO] has undergone a substantial price correction of nearly 50%. At press time, the token trades at $1.18, exhibiting a 3.09% daily increase.

This price movement is set against a backdrop of lingering bearish pressure, as indicated by the Parabolic SAR remaining above the price. ONDO has also faced resistance in reclaiming the critical $1.29 price point, with lower support forming around $1.18.

However, a bullish TD Sequential signal has emerged on the 3-day chart, suggesting a potential easing of selling pressure. If supported by increased market activity, this could pave the way for a recovery.

Hence, traders will be keeping a close eye on how the price reacts to the descending trendline and key resistance levels in the coming days.

ONDO address activity hints at rising interest

According to IntoTheBlock, ONDO's address activity reveals a noticeable uptick. Over the past week, new addresses increased by 16.54%, while active addresses surged by 39.39%. Zero-balance addresses also climbed by 42.25%.

This growth in address activity suggests heightened investor interest, which is typically driven by a token's price movement. In the case of ONDO, its sharp correction may have attracted traders and investors seeking to accumulate at lower prices.

Moreover, the increase in new addresses aligns with rising speculation about the token's potential for recovery. However, sustained growth in address activity is crucial to validate a bullish outlook. If these trends continue, they could indicate accumulating confidence among investors.

ONDO transaction count indicates rising network activity

Santiment reveals that ONDO's transaction count recently jumped from 1,686 to 2,991, indicating a significant increase in network engagement.

Historically, such surges in transaction activity align with periods of increased accumulation, which often precede bullish price action. In this case, traders and investors may be positioning themselves for potential upward movement.

However, it is important to monitor whether this activity remains consistent or declines.

Technical indicators present a challenging but hopeful outlook

Technical indicators for ONDO present a mixed narrative. The Directional Movement Index (DMI) shows a dominant -D line at 27.05, while the +D line lags at 11.65, confirming a bearish trend. The Average Directional Index (ADX) at 27 signals that this trend is well-defined.

However, a bullish signal from the TD Sequential indicator suggests that this bearish phase may be nearing its end. The Parabolic SAR's placement above the price also indicates short-term bearish momentum.

Therefore, breaking through the $1.29 resistance is critical to shifting momentum in favor of bulls. If achieved, it could signify the beginning of a sustained recovery.

MVRV long/short diff indicates cooling sentiment

The MVRV Long/Short Difference, which currently stands at 53.37%, has cooled down significantly from its highs in December. This metric suggests reduced profit-taking pressure, indicating that the market may be stabilizing.

Historically, such declines in MVRV often precede price recoveries, as sellers exit and buyers accumulate.