Ondo crypto tests $0.83 support after 9.21% price drop

Ondo (ONDO) has experienced a 9.21% decline from its recent highs following a rejection at key resistance levels. The price has now moved below the value area low, bringing it in proximity to a critical support region at $0.83. This level is considered a high-confluence zone, aligning with the point of control, the 0.618 Fibonacci retracement, and the low of a local trading channel, all of which increase the likelihood of demand returning at this price level [1].

The recent correction appears structurally healthy, as it has not broken below any major higher lows. Instead, the price is approaching a potential higher low zone, a crucial sign for the continuation of a bullish trend. Market structure remains intact, and as long as the price holds above key support, the broader uptrend remains valid [1].

A key factor in confirming a reversal will be volume. The return of bullish volume at $0.83 would indicate active demand defending the support level. Traders are advised to monitor volume activity closely, particularly for blue volume bars at the point of control, which would suggest that buyers are stepping in to absorb supply and stabilize the price [1].

If the $0.83 level is confirmed through price stability and increasing volume, it could trigger a rotation back toward recent highs and potentially lead to a breakout of previous resistance levels. A reclaim of the value area low would serve as further confirmation of a bullish reversal and signal a continuation of the upward trajectory [1].

Failure to hold this support could lead to further downward movement, but the current pullback remains within the bounds of a healthy correction. The technical indicators suggest that this is a high-probability reversal zone, and as long as the price does not break below key structure, the bullish thesis remains intact [1].

Source: [1] Ondo crypto eyes $0.83 support after 9% drop, bullish reversal in focus (https://coinmarketcap.com/community/articles/688ce0eb0588e86ef38ac53f/)