Since surpassing $2 in December, Ondo’s (ONDO) price has been trading within a descending channel. As a result, the token is 60% down from its all-time high and remains trapped below the $1 mark, with indicators suggesting an extended period of consolidation.
In this analysis, CCN reveals why ONDO’s price is unlikely to break out of the current range.
We will also show the key price levels to watch that could make or mar the token’s short-term potential.
ONDO Shows Weakness
On the daily chart, ONDO’s price has fallen from a swing high of $2.18 and reached a swing low of $0.78 on March 11. The token trades within a descending channel while the price is up to $0.84.
Depending on the movement, a descending channel can be bullish or bearish for the price. If the price breaks above the upper trendline of the pattern, the trend is bullish, and a sustained rally could follow.
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However, in ONDO’s situation, the price is closer to the lower trendline than the upper one. If this remains the same, ONDO’s price will unlikely break out in the short term.
The Relative Strength Index (RSI) also supports this position. Typically, when the RSI reading is above 50.00, momentum is bullish, and the price can increase.
However, this is not the situation, as the RSI on the ONDO/USD chart is below the neutral line. If this remains the same, ONDO’s price might continue moving sideways, as initially stated.
ONDO Price Analysis: Key Levels to Watch
An in-depth look at other indicators also seems to agree with the thesis above. For instance, the Moving Average Convergence Divergence (MACD) reading has dropped to the negative region.
The MACD uses moving averages to measure trends and momentum. When the reading is positive, the trend is bullish.
In ONDO’s situation, the MACD reading indicates bearish momentum, suggesting that the token might be challenging to bounce. The Awesome Oscillator (AO) also seems to support a similar outlook.
As of this writing, the AO reading is negative despite flashing green histogram bars. If this trend continues, ONDO’s price might keep swinging between $0.78 and $0.91.
Should ONDO fail to hold the support at $0.78, its price could crash to $0.52. However, if the cryptocurrency’s value rises above $0.91, the next target for the token could be near $1.15.
Hitting $1.15 could drive ONDO’s price higher, and a rally to $1.82 could follow.
But in the meantime, the token’s value is expected to undergo extended consolidation.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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