Weak volume undermines Ondo Finance token’s latest breakout

Ondo Finance [ONDO] was one of the outliers in the altcoin sector. It has made a remarkable 6.33% move within a day, compared to Bitcoin’s [BTC] 1.90%. The leading crypto was still unable to convincingly clear the $65,000 resistance zone.

The spot taker CVD, which measures the difference between market buy and sell volumes over 90 days, remained dominated by the sellers, according to CryptoQuant data.

The move of 8.1 million ONDO, worth $1.66 million, to Coinbase also sparked concerns of selling pressure. On the other hand, derivatives interest for the altcoin was high.

Coinalyze data showed a 16% uptick in Open Interest in 24 hours. It signaled heightened speculative interest, which could help the altcoin’s short-term momentum.

Are Ondo bulls trapped?

The standout feature since May has been the descending triangle pattern [orange] and the clean bullish breakout Ondo token achieved earlier in July. The MACD was above the zero line, showing steady upward momentum.

Yet, the OBV has been relatively flat. It has not yet cleared the late-June highs, and the trading volume has not matched the intensity of May either.

This can be explained by the bearish ONDO swing structure. Extending from $0.47 to $0.20, a set of Fibonacci retracement levels showed that the 78.6% level was at $0.413.

The market price of the altcoin was slightly higher, but the structure remained in place. An attempted breakout in May was beaten back.

Traders’ call to action- Sell

On one hand, the defense of the $0.31 support in late June was impressive. A repeated move toward the $0.47 supply zone showed buyers were making notable strides forward.

Moreover, Ondo Finance remained the dominant RWA tokenization platform. The launch of the Ondo Network was bullish news for long-term investors.

Yet, it came alongside a lack of firm buying. The spot taker CVD on CryptoQuant remained bearish. The OBV was relatively flat in recent weeks, and the trading volume was unable to match May’s vigor, either.

Unless proven otherwise, the $0.413-$0.470 area represented a selling opportunity. A breakout past the latter level would flip the long-term structure, and a subsequent pullback could then offer a safer buying opportunity.

Final Summary

• The Ondo Finance token saw remarkable short-term gains against Bitcoin and the rest of the market.
• The launch of the Ondo Network and its rally toward $0.470 were accompanied by weak demand and trading volumes, justifying a wary stance from potential buyers.