ONDO Surges 19.8% Breaking Two-Month Descending Channel

ONDO, a prominent cryptocurrency, experienced a significant breakout on Wednesday, surging by 19.8% and marking a notable shift in its market dynamics. This surge allowed ONDO to escape a two-month-long descending channel pattern, a development that has been closely watched by market analysts and investors alike. The breakout was particularly encouraging for market bulls, as it indicated a potential reversal in the bearish trend that had dominated the past few months.

Despite the positive momentum, the overall market structure on the 1-day chart remained bearish. Technical analysis revealed that the 78.6% Fibonacci retracement level at $0.915 was a key resistance level that ONDO needed to overcome to shift the market structure to a bullish one. The On-Balance Volume (OBV) did not make a new higher high compared to the final week of March, suggesting that the buying pressure was not as strong as it could be. The Relative Strength Index (RSI) was at a neutral 50, indicating a potential shift in momentum.

Metrics suggested that there might be a buying opportunity for ONDO. The in/out of the money around price metric identified two nearby support zones at $0.815 and $0.791, both of which were above the falling channel highs. This implied that a retest of these levels or the channel as support could offer a buying opportunity in the coming days. Additionally, the daily active addresses metric, which had seen a severe decline from the second week of March, began to climb higher again over the past week. This rising on-chain activity could point towards an increase in usage and demand for ONDO.

The 90-day mean coin age has been in a steady uptrend since January, with a minor drop in mid-March. The rising mean coin age could indicate that coins were being transacted less frequently. Concurrently, the ONDO dormant circulation metric saw few notable spikes in recent weeks, further suggesting accumulation. The 90-day Market Value to Realized Value (MVRV) ratio was negative, indicating that short to medium-term holders were facing losses. These accumulation trends, combined with the breakout from the two-month channel, were early signs that ONDO could be a decent buying opportunity. However, investors must remain cautious given the prevailing market-wide bearish sentiment.