Assessing whether ONDO crypto could reclaim $0.50 despite $4.4M whale sale

The crypto market has witnessed massive selling pressure over the past three days. Amid this intense downside pressure, some long-term Ondo [ONDO] whales are capitulating and exiting the market.

A whale offloads ONDO worth $4.4M

According to on-chain monitor Nazoku, a long-term ONDO investor, mcaavebank.eth, sold 9 million ONDO worth $4.4 million.

The sale was executed after five months of providing liquidity on Uniswap. The investor’s decision to exit during a downward trend reflected fear. 

Notably, the exchange flows also reflect this sell-side activity. ONDO’s Spot Netflow turned positive after being negative for four consecutive days. 

On the 9th of  October, Spot Netflow rose to $810k, reversing from the -$6 million recorded on the previous day, indicating that more funds flowed into exchanges.

Private markets offer a lifeline

Interestingly, while the broader market mostly declined, ONDO was an exception. After falling to $0.43, the altcoin rebounded, closing at $0.47 on the 8th of October.

On the next day, ONDO showed relative strength, rising to a daily high of $0.49, thus defying the broader bearish trend.

The altcoin extended its bullish trend after Ondo Finance launched its 24/7 Private Markets. Ondo Private Markets offers tokenized exposure to private companies before they go public. Ondo Finance stated that these markets seek to address the existing gap between retail and institutional investors.

Most importantly, these funds offer investors access to companies across various sectors. Such firms include AI, robotics, cybersecurity, biotech, infrastructure, and more.

This narrative appears to have supported the altcoin’s price action over the past day and may have helped the altcoin avoid the recent sell-off.

What ONDO’s momentum indicators say

Although the altcoin made some gains, with buyers making modest purchases, the broader trend showed bearish bias.

The Relative Strength Index (RSI), for example, rose to 56, but remained below the RSI-based MA as of writing. This setup suggested that the buying response was not enough to confirm a trend reversal, while sellers may still have the upper hand.

The True Strength Index (TSI) also supports this view, having fallen to 15. A falling TSI, alongside an RSI that remains below its RSI-based MA, indicated a weak upside momentum.

Under these circumstances, a bullish shift in momentum would help confirm a potential trend reversal. If buying pressure strengthens, ONDO could reclaim $0.50 and target $0.53.

However, given the broader downward bias, if the recent buying response fails to reverse the trend, ONDO could drop to $0.42.

Final summary

• A  long-term ONDO investor, mcaavebank.eth, sold 9 million ONDO worth $4.4 million after offering liquidity on Uniswap for 5 months
• The altcoin rebounded from a $0.43 slip as Ondo Finance launched its private markets, offering exposure to retail investors to private companies.