Ondo Finance has faced significant challenges in recent weeks, with its price down more than 30% from its all-time high of $2.14. Despite the recent downturn, many analysts are optimistic about ONDO's potential for recovery, citing its strong performance earlier in the cycle as evidence of its resilience. As one of the top-performing altcoins, ONDO has always attracted the attention of investors, leading to speculation about its next move.
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However, caution is necessary. Renowned analyst Ali Martinez recently shared a technical analysis warning that ONDO may be at risk of further correction. Martinez highlights the potential formation of a head and shoulders pattern on a price chart, a bearish signal often associated with a trend reversal. If this pattern plays out, it could lead to increased selling pressure and a deeper pullback.
The coming days will be crucial for Ondo Finance As this drives the pivotal moment. Investors will be watching closely to see if the token can overcome bearish signals and rekindle the bullish momentum or if the feared pattern is confirmed leading to further declines. Currently, ONDO's future hangs in the balance, with market sentiment and technical indicators giving mixed signals about its near-term path.
Critical demand of ONDO test
Ondo Finance experienced a significant correction after its strong growth earlier in the cycle and is now testing critical demand levels at key price points. The price of the token stopped at its previous high of around $1.50, which now serves as a pivotal support level. If it holds above this mark, the uptrend could return, potentially setting the stage for another uptrend.
However, senior analyst Ali Martinez has He raised some concerns with a technical analysis This suggests that ONDO may be forming a bearish head and shoulders pattern. This pattern, if confirmed, usually indicates a reversal trend and can lead to increased selling pressure.
Martinez warns that a decisive close below the $1.48 level could trigger a sharp 30% correction, sending ONDO down to around $1.05. Such a move is a significant setback for the token and its investors.
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To invalidate this bearish scenario, ONDO needs to retake the $1.86 level as support, a move that shows strength and restores confidence in the asset's upside potential. Until then, the market remains at a critical juncture, with traders closely watching price action for clues about ONDO's next path. The coming days will be decisive in determining whether ONDO can recover or faces more downside risk.
Technical Analysis: What to Expect
Ondo Finance (ONDO) is currently trading at $1.49 after successfully testing the $1.46 critical support level identified by senior analyst Ali Martinez. This level has proven to be a significant defensive line for ONDO, indicating strong buying interest at this price. The token looks stable at the moment, but market participants are cautious, as broader market conditions could still influence ONDO's trajectory.
Recent resilience at $1.46 is encouraging and suggests that ONDO may be laying the groundwork for a potential recovery. However, a market-level recovery could put further pressure on ONDO, possibly pushing its price down and retesting critical demand levels. Investors are watching key technical levels to confirm a bullish reversal.
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A recovery of the $1.70 level in the coming days is essential for ONDO to regain upward momentum. A decisive move above this mark would indicate renewed strength, paving the way for an upside recovery and possibly retesting previous highs. Until then, ONDO is in a critical position, with traders monitoring broader market sentiment and the asset's ability to hold current support levels. The next steps will be crucial to determine whether ONDO can resume its uptrend or face continued consolidation.
Featured image from Dall-E, chart from TradingView
