ONDO Drops 5% Amid Market Pullback, Bullish Fractal Suggests 261% Surge

ONDO, a prominent Real World Assets (RWA) token, has experienced a notable decline in value over the past week, with a 5% drop, extending its 30-day decrease to 19%. This downturn is part of a broader cryptocurrency market pullback, influenced by escalating geopolitical tensions between Israel and Iran, which has also affected major cryptocurrencies like Ethereum (ETH), which has fallen over 8% in the last 32 days, now trading near $2,550.

Despite the recent decline, a detailed analysis of ONDO's daily chart reveals a bullish fractal pattern that mirrors a previous breakout. This pattern suggests that the current dip could be an optimal opportunity for accumulation. The fractal pattern observed in ONDO's price movements indicates that the cryptocurrency's current price action is similar to a previous pattern that resulted in a significant price increase. This pattern has been identified by analysts who study cryptocurrency price movements and use technical analysis to predict future trends.

Historically, in late 2024, ONDO consolidated within a descending structure, finding support in a demand zone around $0.40-$0.45. After multiple retests and compression below key moving averages, the token surged by 261%, peaking around $1.55. The current price action of ONDO is mimicking this setup, with similar descending resistance lines, moving averages, and accumulation zones. The current candle formation within the demand zone, coupled with a clear test of the 200 Simple Moving Average (SMA), closely resembles the November 2024 breakout. If this fractal pattern repeats, ONDO could target $2.70, representing another 261% surge from current levels, similar to the previous breakout rally.

For ONDO to trigger an aggressive upside move, it needs to hold above the $0.73-$0.80 range and push past the 20 and 100-day SMAs. The next key level is around $0.88 (200 SMA); flipping that into support would further validate the bullish fractal. A breakout beyond the current downtrend line could fuel a move toward the $1.20-$1.40 zone in the short-to-mid term, with the full $1.94 fractal target in sight if momentum continues.

While the recent dip in ONDO's price may appear bearish, a broader perspective reveals a high-potential bullish fractal, similar to the last explosive breakout. If history repeats, this could be a rare accumulation opportunity before a major upside move. However, it is crucial to note that while fractal patterns can provide valuable insights into future price trends, they are not foolproof indicators. Cryptocurrency markets are highly volatile and unpredictable, and there is always a risk that price movements may not follow the expected pattern. Therefore, investors should exercise caution and conduct thorough research before making any investment decisions.