Ondo Finance [ONDO] announced the launch of the first tokenized stock representations backed by DTC tokenized entitlements. Through this initiative, Ondo Finance joins a host of other TradFi giants, including BlackRock, J.P. Morgan, and Goldman Sachs, in participating in “DTCC’s largest tokenization initiative to date”.
Ian de Bode, CEO of Ondo Finance, said
Ondo is the only company simultaneously building all pathways for US securities tokenization. Today’s initiative with DTCC demonstrates that Ondo Stocks infrastructure is purpose-built to interoperate with institutional market infrastructure, not to compete with it.
The announcement has helped bolster the bullish sentiment around the decentralized finance platform and its native token, ONDO. The altcoin has rallied 5.6% in the past 24 hours, with an uptick of 51.7% to its daily trading volume.
The triangle pattern and an impending ONDO breakout
The descending triangle pattern [green] came amid ONDO’s inability to flip the long-term bearish swing structure bullishly. The $0.47 swing high was tested but not convincingly breached.
As things stand, the bearish long-term outlook for the altcoin remains intact.
Yet, the descending triangle could change things around. The $0.31 zone has been defended since June. At the time of writing, the $0.336 local resistance zone has kept bulls from taking prices higher.
Neither the CMF nor the OBV signaled steady buying pressure on the altcoin. Unless proven otherwise, it would be prudent for ONDO swing traders to be cautious of a bullish outcome.
Traders’ call to action- Buy if…
The H4 swing structure was also bearish. The local resistance zone coincided with the 50% retracement level at $0.343. This divided the premium and discount areas for swing traders.
A bullish breakout from the descending triangle pattern could still face rejection from the discount area overhead and be unable to climb past $0.372 and $0.394 resistances.
It would be best for traders and investors to wait for the market to show its hand. Trying to go long right now has its risks.
Final Summary
- News of Ondo’s launch of its first tokenized stock representations based on DTCC tokenized entitlements has buoyed market confidence.
- Volume trends and overarching price action drew question marks over the token’s ability to rally to $0.40 or higher.