RWA Tokenization Contender Ondo Finance (ONDO) Flashes Signs of Life, Can It Recover Lost Ground?

Despite its strong fundamentals, the start of 2025 has been challenging for ONDO, with the token experiencing a massive selloff that led to a 33% drop in value since January 4.

Despite a strong start to 2025, Ondo Finance (ONDO) has faced a massive selloff, leading to a 33% decrease in value since January 4. However, some investors remain optimistic about the token's prospects.

Top crypto analyst Ali Martinez recently shared data that may indicate a turnaround for ONDO. According to Martinez, the token’s funding rate has dropped to -60%, a rare phenomenon. This means that exchanges are paying traders to go long on the token. Such an environment often reflects a highly bearish sentiment in the short term, which can lead to sharp reversals as market conditions normalize.

Ondo Finance is known for its role in real-world asset tokenization, which has attracted attention in the crypto space. As investors seek to capitalize on this trend and navigate the market's volatility, all eyes are on ONDO to see if it can recover and perform as expected in this bull cycle.

Top Altcoin Surges 260% In Two Weeks Of Post-Election Mania

Ondo Finance (ONDO) has become a standout project in the real-world asset (RWA) sector, attracting massive investor attention during the November 2024 post-election rally. During this period, $ONDO surged by over 260% in just weeks, showcasing its ability to generate massive returns in favorable market conditions.

Despite recent price declines, Ondo remains a highly attractive altcoin due to its strong fundamentals and leadership in the RWA space. Top analyst Ali Recently, Martinez shared compelling data on X that sheds light on the current state of ONDO.

According to Martinez, the token’s funding rate has reached -60%. This means that exchanges are effectively paying traders to take long positions on ONDO, creating a unique opportunity for investors.

Typically, such extreme funding rates indicate immense selling pressure, yet in this case, the price hasn’t collapsed under the weight of bearish sentiment. This dynamic often points to underlying strength and the potential for a sharp reversal.

In this scenario, overconfidence among short-sellers may be setting the stage for a squeeze if buying pressure resumes and overwhelms the shorts, propelling the price higher.

For investors seeking opportunities in the altcoin market, Ondo Finance’s current setup offers a compelling mix of risk and reward.

Ondo Finance (ONDO) is currently trading at $1.20, reflecting a volatile price trajectory over recent days. The token has experienced sharp movements, dropping as low as $1.09 before bouncing to a local high of $1.30.

Despite these fluctuations, bears appear to maintain control, overshadowing the broader market recovery.

For bulls to regain momentum and establish a reversal, reclaiming the $1.35 mark is crucial. This level serves as a short-term resistance point that could signal renewed buying interest if surpassed.

Beyond that, the $1.50 level stands as the next significant target, potentially marking a transition into a bullish trend if achieved and held as support.

Conversely, a failure to maintain the $1.20 level could exacerbate bearish sentiment, putting additional pressure on the price. A sustained breakdown below this level might open the door for further declines, testing lower demand zones and discouraging investor confidence.

While ONDO’s fundamentals and market potential remain strong, its short-term price action suggests a cautious approach. Bulls need to act decisively to reclaim key levels and shift the narrative toward recovery, while bears continue to leverage market uncertainty to keep the token under pressure.