RWA Token Ondo (ONDO) Rallies 37% to Hit a New ATH, Whale Activity Surges

RWA tokens were among the top performers at press time after their total market capitalization increased from $51 billion to $63 billion within 24 hours.

Real World Asset (RWA) tokens continued to lead the top gainers' list on 20th December, following a surge in their total market capitalization from $51 billion to $63 billion within 24 hours.

Ondo [ONDO], the fifth-largest RWA token by market cap, emerged as one of the top performers, notching 24-hour gains of 37% to trade at $1.66.

ONDO's recent rally was driven by rising buying activity, with 24-hour trading volumes surging by more than 300%. This buying activity pushed the token's price to a new all-time high of $1.78 on 3rd December.

A technical analysis of ONDO's one-day chart revealed that the Relative Strength Index (RSI) had reached an overbought level of 84. This indicator measures the strength of a trend and suggests that ONDO's uptrend could slow down in the short term.

However, the RSI has been gradually rising since early November, indicating steady accumulation by traders. This accumulation could help sustain the token's bullish momentum over the longer term.

The Average Directional Index (ADX) is also tipping north, indicating that the uptrend is strong. This makes it likely that the token could extend its gains.

If ONDO continues to make successive record highs, the next target for the price is the 1.618 Fibonacci level at $2.05.

Whale activity surges

Whale activity around ONDO is on the rise again after declining over the weekend.

Data from IntoTheBlock showed that in 24 hours, large transactions exceeding $100,000 increased by over 200% from 13.73M to 42.28M.

Whales hold more than 80% of ONDO's circulating supply. Therefore, if these large holders become more active, it is bound to increase price volatility.

ONDO's MVRV ratio hits a 3-month high

ONDO's market value to realized value (MVRV) ratio has been on a gradual uptrend and has reached 7.06, its highest level in three months.

This ratio shows that the market value is seven times higher than the realized value, indicating potential overvaluation.

However, going by past trends, a high MVRV ratio for ONDO often coincides with bullish trends. Therefore, the rising ratio could signal market optimism that could support the continuation of the uptrend.

Open interest hits record highs

The other bullish sign around ONDO is the rising open interest and high trading volumes in the derivatives market. At press time, open interest had reached $285M after a 41% gain in 24 hours.

Rising OI shows an influx of newly opened positions on ONDO as trading volumes in the derivatives market had also increased by over 400% per Coinglass. It also shows high market participation that could boost liquidity.

These bullish signs support the thesis that ONDO could extend its gains to fresh highs. However, traders should watch out for signs of an overheated market due to the overbought RSI and a high MVRV ratio.