Ondo Finance [ONDO] was hit hard, declining over 12% as tensions in West Asia escalated alongside the recent death of its founder.
However, ONDO is not the only asset that got affected amid the uncertainty, as the broader crypto market has also faced a significant decline amid the ongoing tensions.
ONDO price hints at another 12% fall
With this decline, ONDO’s daily chart turned fragile as the price approached the $0.34 level after falling 12.62% over the past 24 hours. In fact, it fell below the 200-day Exponential Moving Average (EMA).
If ONDO’s downside momentum continues and the price falls below the $0.34 neckline level, the asset could witness another 12% decline and potentially reach the next support level at $0.29.
However, this bearish thesis could be invalidated if the asset manages to hold above the $0.34 level.
So far, ONDO has maintained a strong directional trend, as indicated by the Average Directional Index (ADX), which has risen to 43.77, well above the key threshold of 25.
Traders and investors turn bearish
In addition to the price action and broader market sentiment, derivative platform CoinGlass is also reinforcing ONDO’s bearish outlook.
According to the data, ONDO’s Long/Short Ratio fell to 0.865, below the key level of 1, indicating that traders are placing more bets on short positions than long positions.
Meanwhile, $0.35 on the downside and $0.364 on the upside are the two major liquidation levels where traders appear to be heavily over-leveraged.
Traders have built nearly $965,000 worth of long-leveraged positions at these levels, compared to $1.84 million worth of short-leveraged positions.
Whereas, ONDO’s OI-Weighted Funding Rate has turned negative and dropped to -0.0117%, indicating that traders are increasingly betting on the bearish side and expecting further downside momentum in the asset.
Not only have traders been following the broader market trend, but investors and long-term holders appear to be doing the same, according to analytics platform Nansen.
The data shows that ONDO’s exchange reserves have jumped by 1.46% over the past week, indicating that the asset is flowing from wallets to exchanges, potentially signaling upcoming sell-offs.
Final Summary
- ONDO has declined 12.62%, with the price falling to the neckline of a bearish pattern. A breakdown below this neckline could trigger another 12% decline.
- Both traders and investors are following the market trend by betting on short positions and moving their holdings to exchanges for potential sell-offs.
