A whale sold 10.97 million ONDO tokens for $13.58 million USDC, a significant sell-off that led to a 20.7% loss in just 38 days.
The abrupt sell-off comes ahead of a large token unlock scheduled for January 18. The event will see the release of 1.94 million ONDO tokens, which comprises 14.21% of its circulating supply.
While the unlock event raises concerns about potential market volatility, several analysts noted the strength of the market and ONDO's resilience at key technical levels.
“This event usually raises concerns about potential market volatility due to the sudden increase in supply,” the report noted, adding that some investors view it as an opportunity.
One trader highlighted that ONDO is “perfectly holding the 61.8 Fibonacci retracement level,” a key technical support zone, and noted, “I’ve opened a long position at this level.” The trader also dismissed the fear, uncertainty and doubt (FUD) surrounding the unlock event.
Meanwhile, speculation points to a potential price surge for ONDO as broader market conditions improve. The technical stronghold suggests that the panic selling may not reflect the wider market sentiment.
The project boasts robust metrics with 85.51% of its tokens locked, leaving only 14.49% unlocked. In November, ONDO generated substantial economic activity, further solidifying its position as a resilient protocol amidst market fluctuations.
Moreover, the token's association with the Real-World Assets (RWA) narrative positions it as a “Trump coin.” The crypto market buzz is likely to intensify as Trump's upcoming inauguration approaches, offering a unique opportunity for tokens linked to the former president.
The bullish sentiment, combined with the unusual funding setup, could signal a potential price rally for ONDO. Analysts noted to keep an eye on the token as it continues to gain steam. Whether the whale's move was a smart stop-loss or unnecessary panic remains to be seen.
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