Will ONDO Hold the $1 Support Amid $2.4 Billion Token Unlock? | Coinspeaker
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Will ONDO Hold the $1 Support Amid $2.4 Billion Token Unlock?

With Ondo Finance sustaining at $1.18, the upcoming token unlock could reshape the price trend. Will the upcoming surge in circulating supply crash the ONDO price under $1?

Vishal Dixit By Vishal Dixit Marco T. Lanz Edited by Marco T. Lanz Updated 3 mins read
Will ONDO Hold the $1 Support Amid $2.4 Billion Token Unlock?

Key Notes

  • Impending release of tokens worth $2.4B threatens market stability, representing 130% of current market capitalization with potential selling pressure.
  • Technical analysis shows critical support at $1.15-1.28 range, holding substantial token volume as key defense against bearish momentum.
  • Recent whale exit of 10.9M tokens at loss signals market uncertainty, while upcoming Trump event remains potential bullish catalyst.

As the broader crypto market maintains a positive sentiment, things are looking gloomy for ONDO Finance. The ongoing pullback faces intense bearish supply, making the short-term price trend quite bearish.

Will a coming supply wave break below the $1 psychological mark? Or is the potential bounce back to a new all-time high possible?

Ondo Price Analysis Fails To Find Incoming Supply

In the daily chart, the ONDO price action reveals an ongoing pullback phase. Consolidating near the $1.24 mark with an intraday gain of 2.59%, ONDO $1.36 24h volatility: 3.5% Market cap: $4.29 B Vol. 24h: $359.02 M fluctuates near its 100-day EMA line.

The ongoing pullback, starting after the recent all-time high of $2.14, now accounts for a price drop of more than 40%. Nevertheless, the short-term support at $1.18 turns the ONDO price trend on a lateral route.

CRYPTO:ONDOUSD Chart Image by Trojan1234

However, the growing bearishness has resulted in a negative crossroad between the 20- and 50-day EMA lines. Furthermore, the RSI line is moving under the halfway level. Nevertheless, the bullish divergence in the RSI line consolidates at a bullish reversal.

Using the trend-based Fibonacci level over the November and December rally and the ongoing pullback projects the immediate price target at the 23.60% Fibonacci level.

This key resistance is priced at $1.52 and highlights an upside short-term potential of 22%. On the flip side, the breakdown will likely test the bullish dominance at the $1 psychological mark.

The Gigantic Token Unlock Warns ONDO Price Crash

Despite the bullish hope presented in the ONDO price analysis, the upcoming Mammoth Token Unlock is likely to fuel a supply tsunami.

As one of the top real-world asset tokens, ONDO is struggling to perform as the RWA segment grows. Amid such conditions, the RWA crypto is set to face a massive unlock event of 1.94 billion ONDO tokens, worth $2.4 billion.

The entry of such massive tokens into the circulating supply will likely flood the market with increased selling pressure. The token unlock accounts for more than 130% of the current ONDO market cap of $1.8 billion, while the broader market anticipates a massive sell-off due to the gigantic token unlock.

The Trump swearing-in ceremony on Jan. 19 remains one of the few bullish catalysts to hold off the selling spree.

ONDO Whale Takes A Smart Exit

Amid the growing threat of a price crash, a big whale has dumped its entire ONDO holding. With a sale of 10.978 million ONDO tokens, the whale closed its position for a loss of $3.54 million. Suffering a loss of 20.7% in just 38 days, the whale went home with 13.58 million USDC tokens.

However, while many judged the recent sale as a paper handing, the upcoming token unlock could prove this sale as a smart exit before the potential crash.

Key Support Levels for ONDO

As the token unlock warns of a bearish continuation, the price action analysis reveals a strong support at the $1 psychological mark. However, the intense selling pressure due to the massive token unlock will likely break multiple support levels.

Under such conditions, the global in-and-out-of-the-money indicator from InterTheBlog highlights a crucial support zone. The current in-the-money zone extends between $1.15 and $1.28, holding 749.66 million ONDO tokens, followed by the supply zone between $1 and $1.15, holding 315.96 million ONDO tokens.

The $1 psychological mark is likely to act as a crossroads for a bullish turnaround. The next crucial zone lies between $0.90 and $1, holding 47.66 million ONDO tokens.

Hence, the $1.15, $1, and $0.90 levels are key support zones that could act as a bounce pad for ONDO to make a bullish turnaround.

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.

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Vishal Dixit
Author Vishal Dixit

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.

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