Home / Analysis / Crypto / Technical Analysis / ONDO Price Climbs 15% – Correction Could be Over if Triangle Pattern Breaks

ONDO Price Climbs 15% – Correction Could be Over if Triangle Pattern Breaks

Last Updated May 16, 2024 10:10 AM
Valdrin Tahiri
Last Updated May 16, 2024 10:10 AM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • ONDO entered the top 100 cryptocurrencies in March and is currently ranked #70.
  • The price has corrected since reaching its all-time high on March 31.
  • As ONDO consolidates inside its pattern, investors contemplate if it has the potential to break out.

The ONDO price has been one of the biggest gainers since its launch on January 18, increasing by 910% until now. Even though the price fell sharply after its all-time high on March 31, it regained its footing on April 12.

ONDO is trading near the end of its consolidating pattern, so the question on everyone’s mind is if it can break out from this pattern and reach a new all-time high, or if the correction will deepen instead.

Will ONDO Break Out?

The ONDO price has traded inside a symmetrical triangle since March 31. While the triangle is a neutral pattern, it often leads to trend continuation. Since the triangle transpires after an upward movement, a breakout from it will be the most likely future scenario.

ONDO also bounced at its trend line on April 13, creating a long lower wick and validating both the 0.5 Fibonacci retracement support level and a horizontal support area (green icon). ONDO is nearing the endpoint of the triangle, so a decisive movement outside of it is likely.

ONDO Future Movement
ONDO/USDT 12-Hour Chart | Credit: TradingView

The wave count shows a completed A-B-C-D-E sub-wave count (black), supporting the possibility of an increase. If this happens, the ONDO price can reach the next resistance at $1.34. The 1.61 external Fibonacci retracement of the triangle creates this target. If reached, it will be a new all-time high price.

Despite the positive price action and wave count, technical indicators do not confirm the bullish trend reversal yet. This is because the RSI is freely moving above and below 50, a sign of a an undetermined trend. Similarly, the MACD is at 0. Alternatively, breaking down from the triangle can catalyze a drop to the closest support at $0.65.

What Is ONDO?

ONDO is the native token of the Ondo DAO. The Ondo DAO  is a decentralized autonomous organization where ONDO token holders govern economic parameters and smart contract upgrades through a two-stage process of forum discussions and on-chain voting.

The two-stage process involves forum discussions where governance proposals are posted for community feedback, followed by on-chain voting using Tally, where ONDO token holders cast votes based on their ownership to finalize and execute proposals.

ONDO launched in January 18, and in a little over two months, it entered the top 100 cryptocurrencies ranked by their market capitalization. The token has a total supply of 10 billion and a circulating supply of 1.38 billion, slightly less than 14% of the total supply. However, nearly all of the remaining supply is locked  for more than a year.

ONDO Price Prediction: Can Price Reach $1?

The ONDO price has increased alongside an ascending support trend line since its launch on January 18. More recently, the trend line was validated on March 19 (green icon), accelerating the rate of the upward movement. Since then, ONDO has increased by 120%, culminating with a new all-time high price of $0.83 on March 21.

ONDO Price Movement Toward $1
ONDO/USDT 12-Hour Chart | Credit: TradingView

The wave count suggests ONDO is in the fifth and final wave of the upward movement that started the increase. Wave five has extended and could soon reach the same length as waves one and three combined, culminating with a high of $0.96. If wave five extends further, the next resistance will be at $1.31. This will give wave five 1.61 times the length of waves one and three combined.

Despite being in overbought territory, the 12-hour RSI is increasing and has not generated any bearish divergence.

ONDO Price Could Soon Reach $1

ONDO has shown considerable strength by increasing over 120% in the past two days. The price reached a new all-time high today. If the increase continues, the next targets are at $0.96 and $1.13.

Was this Article helpful? Yes No