ONDO defends key support—THESE are the levels to watch now
Journalist
Posted:
- Ondo Finance saw increased activity and network growth over the past month.
- Its price action was relatively strong compared to other altcoins.
Ondo Finance [ONDO] has announced the Ondo Chain, a purpose-built Layer-1 chain for institutional-grade RWAs.
It is designed to solve problems faced by tokenized RWAs, such as incompatibility with DeFi and inadequate network and protocol safety.
The news announcement and growing bullish performance across the RWA sector have given investors new hope. AMBCrypto examined on-chain activity to understand whether the token is undervalued.
High activity and steady growth signals…
Source: Santiment
The number of wallets with specified holdings on the charts has been rising. Typically, the number of whale addresses increases while retail investors (addresses with smaller holdings) sell-off, indicating whale accumulation.
All cohorts rising in number indicate increased accumulation, demand, and network activity. This underlines rejuvenated network growth and is a good sign for the chain and its investors.
Source: Santiment
The daily active addresses metric has trended higher since early January, reinforcing the idea of increased on-chain activity. Additionally, network growth has also increased. This metric measures the number of new addresses created on the network each day.
Transaction volume has plateaued over the past three weeks, but the other activity metrics were encouraging.
Source: Santiment
The social metrics were on the rise as well as the on-chain activity. The Social Volume has been trending higher since early January. The Weighted Sentiment has also remained mostly positive over the past three weeks.
Yet, the Open Interest has fallen slightly lower over the past ten days, compared to the previous month.
This drop can be attributed partly to liquidations from the swift losses on the 3rd of February, and partly to traders choosing to stay sidelined following the spike in volatility in February.
Is your portfolio green? Check the Ondo Profit Calculator
Source: ONDO/USDT on TradingView
ONDO bulls have successfully defended the 61.8% retracement level at $1.8 over the past six weeks, plotted based on the rally in November. Even though the CMF signaled heavy capital outflows, the price has not made new lows over the past month.
This was encouraging. It underlined the relatively good performance of Ondo amongst other mid-to-large cap altcoins. This relative strength could be a boon for the bulls in the coming weeks.
There was a range formation between $1.18 and $1.6. If demand for Ondo remains steady, this consolidation phase could quickly turn into an uptrend once the market-wide sentiment stabilizes.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion