ONDO Price Struggles to Recover Despite Partnership With Trump-Backed World Liberty Finance

Key Takeaways

• ONDO price did not register an increase even though it has collaborated with WLFI.
• The chain’s new, active, and zero-balance addresses decreased amid the development.
• Demand for the token remains low, suggesting that it might continue to trade sideways.

On Tuesday, Feb 11,  the Ondo Finance team confirmed its partnership with World Liberty Finance (WLFI), the crypto project owned by the Trump family.

Despite the high-profile collaboration, ONDO’s price, down from its all-time high, failed to notch a price increase. Instead, the altcoin’s price fell by another  4.35%.

With hawkish broader market conditions, this collaboration might not be enough to drive a turnaround in ONDO’s price.

ONDO Network Activity Declines, Stakeholders Skeptical

According to the ONDO team, their partnership with WLFI might help drive the adoption of Real World Assets (RWA). The team also believes it could encourage traditional financial institutions to tokenize their assets on-chain.

While this seems like a positive development, ONDO’s price continues to struggle in its attempt to rebound toward the $2 mark. However, CCN has observed other factors behind the scenes that are holding ONDO back.

One factor is the decline in user activity on the network. According to IntoTheBlock, zero-balance, new, and active addresses on Ondo have all decreased in the last seven days.

This drawdown suggests a decline in the number of transactions on the network and a decrease in first-time users. If this trend continues, ONDO’s price may struggle to recover its recent losses.

Furthermore, on-chain data from Santiment reveals a significant decrease in the value of ONDO held by large holders. The balance of addresses owning over 1 billion tokens dropped by over $100 million between February 6 and today.

This decline suggests key stakeholders are liquidating their assets. If the sell-offs continue, it could put further downward pressure on ONDO’s price.

ONDO Price Forecast: Consolidation to Continue

On the technical side, ONDO’s price has been swinging between $1.16 and $1.60 since Dec. 26, 2024. This range-bound movement has led to the completion of a three-wave A-B-C correction.

Amid this sideways movement, the Relative Strength Index (RSI) has remained below the 50.00 neutral point. This indicates that the ONDO’s momentum remains bearish.

ONDO might struggle to recover if the RSI on the daily chart fails to rise above the zero signal line. In addition, the Cumulative Volume Delta (CVD), which tracks the level of buying and selling pressure, has a negative value.

This CVD reading indicates that the selling volume outpaces the buying volume. If this remains the same, ONDO’s price might keep trading at its current levels since December.

However, if selling pressure increases, the token’s price might drop to $0.95.

On the contrary, a rise in accumulation might change this trend. In that scenario, ONDO’s price might rebound toward $2.15.