Ondo (ONDO) Retesting Falling Wedge Breakout: Is A Bounceback Ahead?

Date: Tue, Jan 21, 2025, 04:21 AM GM

In the last 24 hours, the cryptocurrency market has experienced notable volatility. While Donald Trump’s much-anticipated inauguration concluded without explicit mentions of crypto, large purchases by Trump’s World Liberty Financial have reaffirmed his pro-crypto stance.

Source: @worldlibertyfi (X)

Meanwhile, Bitcoin dominance soared past 59% today, exerting pressure on altcoins, which are largely in the red. Among them, Ondo (ONDO), an RWA (Real-World Asset) token, is also facing a downturn. However, its technical price action hints at a potential recovery in the near future.

Source: Coinmarketcap

Retesting Falling Wedge Breakout

ONDO's bullish momentum began in November 2024, with a staggering 250% rally from $0.65 to a peak of $2.14. After this rally, ONDO entered a correction phase, forming a Falling Wedge pattern—a classic bullish reversal indicator.

ONDO 1D Chart/Coinsprobe (Source: Tradingview)

Meanwhile recently on January 18, ONDO broke out above the wedge's descending trendline, marking a short-term high of $1.55. This breakout suggested the possibility of a reversal, provided ONDO maintained support above the wedge’s upper boundary.

As of now, ONDO is trading at $1.28, holding above the critical $1.20 support level, where the 50-day moving average aligns. This level is a key inflection point for ONDO’s price action. A successful bounce from this zone could lead to a retest of the immediate resistance range of $1.55-$1.64. Beyond this, the next major resistance lies at $2.14, the token's previous high.

The MACD (Moving Average Convergence Divergence) is nearing a bullish crossover, indicating growing buying pressure. This reinforces the possibility of an upward move if ONDO sustains its current support levels.

What’s Next for ONDO?

A bounce could reignite bullish momentum, potentially leading to a rally toward $2.14. Conversely, a break below this support might expose ONDO to further declines, with the next support near $1.10.

BTC dominance will remain a key factor to watch, as further increases in dominance could suppress altcoins, including ONDO. However, any pullback in Bitcoin dominance could provide ONDO and other altcoins with room to recover.

Final Thoughts

Ondo's price action and technical indicators suggest a potential reversal, but its path forward depends on holding critical support levels and overcoming near-term resistance zones. For traders, ONDO presents an intriguing opportunity, but caution is advised given the broader market conditions.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.