ONDO Price Drops 25% Despite Surge in User Activity and Network Growth

Key Takeaways

• ONDO’s price has declined 25% over the past 30 days despite a sharp rise in active network addresses
• Price action remains trapped in a descending channel, signaling sustained bearish momentum.
• The daily chart also reveals an inverse cup and handle pattern, a classic bearish reversal signal.
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Despite Ondo’s (ONDO) growing network activity, its price has struggled to show significant increases. The cryptocurrency has faced a 25% decline in the last 30 days.

Although the rise in user participation and interaction is a typical positive sign in a bull market, the current bear market environment seems to be preventing any substantial price gains.

ONDO Sees Rising On-Chain Activity

On Sunday, Ondo’s 24-hour active addresses were less than 1,500. At press time, the same metric has risen to 3,347.

Active addresses can be tracked over different timeframes, such as daily, weekly, or monthly. This metric helps one understand the level of adoption and the movement of tokens in the market.

A higher number of active addresses indicates rising engagement on the network. A decrease in active addresses, on the other hand, signals lower interest or activity in the asset.

On several occasions, when active addresses increase, ONDO’s price follows in the same direction. This was also the case when the token’s value hit an all-time high of $2.14 in December 2024.

However, it is important to mention that the market was euphoric then. But in this case, the broader sentiment is mostly gloomy, with little to no optimism.

Bullish Reversal Not Confirmed

Due to this change, the hike in user activity might not be able to help ONDO’s price erase a major part of the 25% decline.

Amid this growth, ONDO’s price still trades within a descending channel. A descending channel is a pattern that illustrates a downward trend formed by two parallel trendlines.

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These trendlines connect the lower highs and lower lows of a cryptocurrency’s price action, indicating that the asset is in a bearish trend. Furthermore, the Chaikin Money Flow (CMF), despite testing the zero signal line, has yet to rise above it.

Should this remain the case, ONDO might remain within the bearish channel.

ONDO Price Breakdown Not Over

Another look at the daily chart shows that ONDO’s price has formed an inverse cup and handle pattern. The inverse cup and handle is a bearish chart pattern that typically signals a potential reversal from an uptrend to a downtrend.

The pattern starts with a rounded, inverted “U” shape resembling a cup. This signifies a gradual price decline, followed by a consolidation period during which the price forms a bottom.

After the cup forms, a small retracement or consolidation occurs, creating the “handle.” This handle slows upwards, indicating brief buying interest or a weak rally before the final breakdown.

As shown below, ONDO’s price has broken below the pattern’s neckline. If the trend remains the same, the token might decline to $0.50.

On the contrary, if ONDO retests the neckline near $1.13, this prediction might be invalidated. In that case, the cryptocurrency’s value might rally to $1.52.