ONDO Price Fails to Confirm Bullish Reversal Despite Move Above $0.80

Key Takeaways

• ONDO price has rebounded to $0.81 but still trades below the descending trendline.
• CMF at -0.05 signals fading buying pressure, increasing the risk of a drop below $0.78.
• The MFI below 50 indicates weak demand, potentially leading to a pullback toward $0.73.
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After dropping to $0.74 yesterday, Ondo’s (ONDO) price has moved above $0.80. Within the last 24 hours, the cryptocurrency’s value is up by a modest 5%, which is still in line with the average gains of altcoins in the market.

Despite the rebound, technical indicators reveal that ONDO might struggle to keep swinging higher. Here are the reasons, with CCN showing how ONDO’s price might perform in the short term.

ONDO Price Fails to Break Descending Trendline

While ONDO’s price has increased to $0.81, the daily chart shows it trades below the descending trendline. This falling trendline was one reason the token’s bullish momentum stalled last week.

Besides that, the Chaikin Money Flow (CMF) reading, which rose above the signal line earlier, has decreased to -0.05. The decline in the CMF indicates that buying pressure around ONDO is fading.

If this trend persists, the altcoin could continue moving sideways and risk dropping below the horizontal support at $0.78. Supporting this outlook, the Moving Average Convergence Divergence (MACD) suggests a low probability of a bullish reversal.

This is primarily due to the positioning of the Exponential Moving Averages (EMAs). As of this writing, the 12 EMA (blue) and 26 EMA (orange) converge, signaling indecision between buyers and sellers.

Should this trend linger, then ONDO’s price might keep swinging between $0.74 and $0.87.

ONDO 4-Hour Outlook: Still Trapped

The setup on the 4-hour chart also seems to present a similar outlook. As seen below, ONDO’s price is stuck within a descending channel, indicating that the outlook is more bearish than bullish.

A look at the Supertrend indicator also seems to support this position. Typically, when the green line of the Supertrend indicator is below the price, the trend is bullish.

In that case, the price is likely to increase. On the flip side, when the red line is above the price, the trend is bearish.

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As seen below, the red line of the Supertrend is above ONDO’s price, indicating that the altcoin faces resistance over $0.82. Additionally, the Money Flow Index (MFI) reading is below the 50.00 neutral line.

This MFI position indicates that the buying pressure around the token is insufficient to keep ONDO in an uptrend. If this continues, ONDO might pullback to $0.73 in the short term.

However, if the MFI reading breaks the midpoint, ONDO could break the upper trendline. Should that be the case, the cryptocurrency’s value might rise to $0.95, close to the  0.236 Fibonacci level

If buying momentum accelerates at this level, the value might soar to $1.09.