Key Takeaways
ONDO broke out above $0.87 on the charts as whale activity and taker buy pressure surged. In fact, weighted sentiment and the DAA divergence confirmed strong market and network support too.
ONDO’s price broke above its multi-month descending triangle, with the same signaling a key trend reversal after prolonged consolidation on the charts.
The daily close above $0.87 confirmed the breakout and pushed the token towards $0.94, flipping previous resistance into solid support. This breakout has opened a path to the next targets at $0.965 and $1.116. If bullish momentum holds, ONDO could attempt to reclaim the $1.40-level.
The move comes on the back of strong market alignment across whale activity, sentiment, and trading behavior – Key factors that could determine whether this breakout sustains itself in the coming weeks.
Source: TradingView
Could positive sentiment sustain the bullish momentum beyond $1?
ONDO’s weighted sentiment surged to 2.24, marking one of its highest levels in months. Such a sharp hike reflects growing optimism and speculation among market participants.
Historically, such spikes have preceded price rallies, especially when supported by bullish breakouts. However, sentiment extremes often attract volatility as profit-taking tends to follow euphoric phases.
And yet, press time conditions suggested that market participants believe in ONDO’s upside potential. Therefore, as long as positive sentiment aligns with fundamentals, ONDO’s breakout will be supported by growing confidence.
Source: Santiment
Are whales quietly accumulating ONDO during this breakout?
Spot average order size data revealed a sharp rise in transaction size, indicating the presence of large buyers.
According to Santiment, ONDO’s recent surge drew big whale orders into the market – A strong bullish signal. Such activity often acts as a stabilizer, absorbing retail-driven volatility while supporting upward price momentum.
While retail interest tends to fluctuate with short-term price moves, consistent whale accumulation usually is a sign of long-term conviction.
If these large participants continue to scale in, ONDO’s breakout may find the structural support needed to push higher.
Source: CryptoQuant
Can network activity justify ONDO’s rising price?
At the time of writing, ONDO’s Price-DAA divergence was positive, with the same hovering around +152%. This metric highlighted a healthy increase in daily active addresses relative to price action.
As long as on-chain activity grows in tandem with valuation, the market will generally perceive the rally as sustainable. Moreover, strong DAA performance would reinforce ONDO’s use case and real-world engagement.
To put it simply, the ongoing divergence suggested that the press time price gains weren’t entirely speculative. However, any drop in address activity while the price climbs could weaken the bullish narrative and invite a correction.
Source: Santiment
Will leveraged longs fuel ONDO’s next leg or backfire?
Data from Binance revealed a long/short ratio of 3.23, with over 76% of accounts holding long positions.
This overwhelming bias is a sign of strong retail confidence in further upside. However, such extreme positioning can act as a double-edged sword. If the price drops unexpectedly, mass liquidations could trigger a sharp reversal.
Still, for now, bullish traders appear to be firmly in control. As long as buying pressure persists and support levels hold, leveraged positioning could act as a springboard rather than a risk.
Source: Coinglass
Can ONDO defend the breakout and aim for $1.40?
The confluence of whale activity, rising sentiment, strong network fundamentals, and retail confidence suggested that ONDO’s breakout has meaningful backing.
However, the sustainability of this rally will depend on continued buying pressure, steady on-chain growth, and balanced sentiment.
If these factors align, ONDO could realistically aim for the $1.116 and $1.40 resistance zones in the coming days. Therefore, given current market dynamics, ONDO is likely to maintain its upward trajectory towards $1.40.