Ondo Drops 1.932% Amid Investor Profit-Taking Concerns

Ondo's latest price was $0.9457, down 1.932% in the last 24 hours. This cryptocurrency has been garnering attention due to its recent market movements and investor behaviors. In April, Ondo broke out of a descending channel, which led to a series of higher lows and higher highs. However, this rally has been met with some concerns from investors due to the relatively low trading volume following the channel breakout. The Chaikin Money Flow (CMF) indicator, which measures the amount of Money Flow Volume over a specific period, has remained below the +0.05 level, indicating sizeable capital outflows recently. This has raised worries among investors about the sustainability of the rally.

Despite the rally, the MVRV Z-score, which measures whether the token is undervalued or overvalued relative to its “fair value,” fell to lows last seen in August-November 2024. This suggests that during and just after the channel breakout, Ondo likely formed a market bottom. However, clues pointed toward profit-taking during the rally alongside weak demand. The Spent Output Profit Ratio (SOPR) of Ondo rose to 1.53 on the 9th of May, indicating that holders were making profits. However, almost immediately, it fell back to 1.01, showing that holders’ profits had decreased, even though the price was still around $1. This drop in SOPR was likely due to increased profit-taking from short-term holders, as the dormant circulation has not changed dramatically over the past three weeks, indicating a lack of ONDO movement from long-term holders’ addresses. The mean coin age has been trending higher since mid-March, briefly dipping on the 8th of May during the Ondo rally, which suggested some token movement from holders, likely profit-taking activity that affected the SOPR.