Ondo To Release $2.42B Tokens—Falling Wedge Signals Potential Bullish Breakout

Key Takeaways

• The Ondo team will release 1.94 billion tokens worth $2.42 billion on Jan. 18.
• Despite the scheduled supply shock, crypto whales are accumulating the token.
• ONDO has formed a falling wedge, indicating that the price could climb to $1.76.

Over the past month, ONDO has been one of the worst-performing cryptos in the top 100. During this period, its price decreased by 40%.

This price decrease was due to low demand for the token and sell-offs by key stakeholders.

However, the upcoming ONDO token unlock could change this trend.  Here is why.

Ondo Whales Lower Selling Pressure Before Unlock

The ONDO token unlock is scheduled for Jan. 18. According to data from Tokenomist, the project will release 1.94 billion tokens , valued at $2.42 billion—the largest this week.

Typically, this sort of event means teams, early investors, and a part of the community can now trade, sell, or decide to HODL their tokens.

But in most cases, this causes a supply shock, and the price decreases amid high volatility.

Given the conditions above and the weight of the unlock, ONDO’s price might experience an accelerated downturn toward the event.

As of this writing, ONDO’s price is $1.13, representing a 46.90% drawdown from its all-time high of $2.14.

However, according to data analyzed from Santiment, ONDO might recover a significant portion of its recent losses following the token unlock.

On-chain data reveals that the balance held by addresses owning between 100 million and 1 billion ONDO has notably increased.

As of Jan. 6, this cohort’s balance stood at -160.22 million ONDO, reflecting substantial selling pressure.

However, as of today, the figure has improved to -146.02 million tokens, indicating that these whales have accumulated 14.20 million ONDO—worth approximately $16 million—over the past week.

If this trend of accumulation continues, ONDO’s price could potentially see a double-digit surge after the unlock.

ONDO Price Prediction: Falling Wedge Reveals Possible Rally

From a technical perspective, ONDO has formed a falling wedge on the 4-hour chart.

A falling wedge is a bullish reversal pattern created by drawing two descending trendlines. One line connects the lower highs, and the other links the lows. Typically, as the lines converge, a breakout happens once buying pressure comes into play.

In ONDO’s case, the token trades around the $1.14 support. If it continues to hold this line, then a rebound could be on the card.

Furthermore, the Relative Strength Index (RSI) has also hit an oversold area. For context, a cryptocurrency is overbought when the RSI surpasses a reading of 70.

However, as of this writing, the reading is below 30. This indicates that the token is oversold, and a bullish reversal could be close.

If that remains the case, ONDO’s price might jump 55% to the 0.618 Fibonacci level. If validated, the token might climb to $1.76 in the short term.

On the other hand, if significant buying pressure fails to show up after the token unlocks, this prediction might not come to pass. In that scenario, ONDO’s price might drop below the $1 mark and invalidate the bullish thesis.