ONDO’s funding rate sits at an extreme -63.73%, signaling a rare bullish opportunity.
Falling channel breakout could target $2.32 and $2.60, marking a continuation of its bullish trend.
Critical support levels lie at $1.19 and the 200 EMA is near $1.00, holding the key to short-term price stability.
With Bitcoin BTC$97 53124h volatility:1.9%Market cap:$1.93 TVol. 24h:$43.31 B
crossing above the $100,000 mark, the total crypto market cap excluding Bitcoin peaked at $1.48 trillion. With the 7.32% surge in the altcoin market, crypto market sentiments have significantly improved.
Over the past 24 hours, the Ondo price has increased by just 2.6% with a market cap of $1.66 billion. In the daily chart, the Ondo price action reveals a falling channel pattern, holding the price trend.
Currently, Ondo price action reveals a crucial horizontal support at the $1.19 level. This drives the short-term sideways trend within the channel pattern.
ONDO Price Chart
With an intraday drop of 6.68%, the sellers have undermined the 8.06% surge last night. This limits the 24-hour growth and warns of a bearish continuation within the falling channel.
However, the dynamic average line of the 200-day EMA is likely to act as a bullish cushion. Furthermore, the daily RSI line reveals a minor bullish divergence, increasing the breakout chances.
Analyst Promotes Bullish Positions in Ondo Finance
As the Ondo token price action reveals a bullish setup, the recent tweet from Ali Martinez supports the bullish sentiment. In his recent X post, Ali Martinez highlights the negative funding rate in the Ondo derivatives market.
$ONDO currently has a funding rate of over -60%, which means exchanges are literally paying you to go long on it. That’s a rare setup and one worth taking note of. pic.twitter.com/XzMxhlxa54
The funding rate of -63.73% t reflects an extremely rare setup where exchanges are paying traders to hold bullish positions. While Ali Martinez judges this situation as a risk worth taking, traders avoiding the high leverage might be better off.
ONDO Price Target Levels
Based on the broader price action, the current falling channel pattern acts as a pullback of the November and December bullish rally. Hence, a potential breakout of the falling channel will prolong the bullish journey.
Using the trend-based Fibonacci levels, the channel breakout will likely re-challenge the 61.80% Fibonacci level near the $2.00 psychological mark. Beyond this, the price targets are at $2.32 and $2.60.
On the flip side, the 200 EMA near the $1.00 psychological mark and the $0.80 mark are crucial support levels.
Conclusion
The rare negative funding rate offers a bullish opportunity but comes with risks, especially for high-leverage traders. However, the falling channel pattern and RSI divergence support a potential breakout. In a nutshell, if ONDO bounces off from the $1.19 support and breaks the channel, targets at $2.32 and $2.60 remain within reach.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.