After failing to reclaim the $1 mark since March 7, Ondo (ONDO) faced a correction, dropping below $0.80 by March 11. However, the token experienced relief later and wobbled around $0.86 today.
Amid this performance, CCN’s deep dive into the price action shows that a major breakout is unlikely. This is due to signs shown by several indicators on different timeframes.
But how will ONDO’s price face in the days to come? Let’s find out in this analysis.
ONDO’s Fate Hangs in the Balance
On the daily chart, ONDO’s price remains confined within a descending triangle. A descending triangle is a bearish pattern defined by a downward-sloping upper trendline and a flatter horizontal support line.
This pattern typically indicates a potential breakdown if the price breaches the support level. As of this writing, ONDO has risen above the horizontal support line.
It also tests the upper trendline with resistance around $0.94. However, despite flirting with the falling line, ONDO’s price might not break above the bearish pattern.
One reason for this thesis is the position of the Supertrend indicator. The Supertrend helps to identify market trends, generating buy or sell signals in the process.
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When the price moves above the Supertrend line (green), it signals a bullish trend. Meanwhile, the price falling below the Supertrend line (red) indicates a bearish trend.
As seen above, the indicator’s red line is above ONDO. Therefore, the altcoin’s price is unlikely to experience a sustainable rally in the short term.
ONDO Price Analysis: Sideways Movement to Continue
The setup on the daily chart, the 4-hour timeframe, also likely reveals that ONDO remains trapped. Based on the 4-hour analysis, ONDO’s price is trading in a falling channel with support at $0.77 and resistance at $0.94.
Further assessment of the cryptocurrency shows that the Moving Average Convergence Divergence (MACD) reading has turned negative. This indicates bearish momentum.
If sustained, this might make it challenging for ONDO to break out of the descending channel. The 12 EMA (blue) has also crossed below the 26 EMA (orange), indicating that the sentiment around the token is more bearish than bullish.
Should this trend remain the same or accelerate downward, ONDO’s price might drop to $0.73, which is still within the descending triangle.
The market value might slide lower than $0.60 in a highly bearish market condition. However, if buying pressure around the token increases, this might not happen.
In that scenario, ONDO might climb above the $1 mark.
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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