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Ondo Finance (ONDO) Hits ATH as Whale Transactions Fuel Rally

Published 22/03/2024, 09:51
Ondo Finance (ONDO) Hits ATH as Whale Transactions Fuel Rally
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  • ONDO hits new ATH at $0.8162 amid whale activity and market optimism.
  • BlackRock’s digital asset fund spotlight boosts ONDO as it expands tokenization in the Asia Pacific.
  • Technical indicators suggest ONDO may be overbought, hinting at potential correction.

Ondo Finance’s native token, ONDO, has witnessed an upturn, marking a new all-time high (ATH) of $0.8162 after finding support at the intra-day low of $0.6931. At press time, the rally was still in play, with ONDO price up 0.21%, exchanging hands at $0.7209.

ONDO/USD 24-hour price chart (source: CoinStats)

Surging Interest and Whale Activity

The price surge in ONDO comes amid increased interest from large investors, “whales,” who have been actively transacting large amounts of the token. Data from cryptocurrency analytics platform Santiment shows an uptick in whale transactions, with those involving at least $100,000 worth of ONDO rising from 68 to 91 unique transactions within 24 hours. This increased activity from large investors is often a precursor to heightened price volatility and can significantly influence market dynamics.

In parallel to the whale transactions, there has been a decrease in the supply of ONDO tokens available on exchanges. According to Santiment, the supply of ONDO on exchanges diminished from 536.64 million to 529.60 million tokens since March 18. This trend suggests a growing propensity among investors to hold onto their tokens in anticipation of further price increases rather than engaging in immediate profit-taking.

Concurrently, the market’s response to ONDO’s price movement has been positive, propelling the token into the top 100 cryptocurrencies by market capitalization, with a total market cap of $1,048,138,273. This ascent is reflective of the growing investor confidence in Ondo Finance and its tokenized asset offerings.

Ondo Finance Expansion

Ondo Finance has been on an expansion spree, extending its real-world asset (RWA) tokenization services to the Asia Pacific region earlier this year. This move has allowed the platform to tap into a burgeoning market, enabling international investors to access U.S. asset classes through tokenization. With a reported 40% market share in its niche, Ondo Finance is solidifying its position as a key player in the DeFi space.

The recent developments, moreover, around BlackRock’s filing for the BlackRock USD Institutional Digital Liquidity Fund, in partnership with Securitize, have also cast a spotlight on RWA tokenization. Given that Ondo Finance operates within this domain, the broader market interest in tokenized assets could bode well for the platform’s continued growth and the valuation of its native token.

ONDO/USD Technical Analysis

Technical indicators such as the Relative Strength Index (RSI) on the ONDOUSD 4-hour price chart (81.21 rating) indicate that the token may be overbought in the short term, perhaps leading to a price drop. This pattern may imply a chance for investors to enter at a lower price point, capitalizing on the correction before the token continues its upward trajectory.

ONDO/USD 4-hour price chart (source: TradingView)

Furthermore, the Money Flow Index (MFI) rating of 89.21 adds to the likelihood of a price drop. This MFI level shows that the token is now under significant purchasing pressure, which may eventually lead to a price drop as investors take profits.

The post Ondo Finance (ONDO) Hits ATH as Whale Transactions Fuel Rally appeared first on Coin Edition.

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