Ondo [ONDO] has been on a bullish tear recently. The DTCC news spurred the altcoin to break highs not seen in almost three months.
Recently, Ondo Finance, working with JPMorgan’s Kinexys, Mastercard, and Ripple, was reported to have completed a near-real-time cross-border redemption of OUSG. This test transaction was settled within five seconds and occurred outside traditional banking windows.
Ondo Finance and the others were laying the groundwork for a 24/7 market, and this news also boosted the sentiment around the altcoin.
The Bitcoin [BTC] pullback from $82.8k has seen many altcoins take a step backward in recent days, but ONDO continued to trend higher.
Can the bulls flip $0.413 to support and set new highs, or will this rally falter soon?
Exploring the bearish long-term ONDO view
In a recent report, AMBCrypto noted that the swing structure of ONDO was bearish on the 1-day timeframe. The $0.413 level was the 78.6% Fibonacci retracement level and could still yield a bearish price reaction.
As things stand, this view remains possible. The CMF and A/D indicators signaled strong buying pressure since the breakout past the local resistance at $0.28. The upward momentum has not stalled yet.
The momentum indicators did not signal a bearish divergence on the 4-hour chart. This indicated that the short-term uptrend can extend further, toward $0.413, as laid out on the 1-day timeframe.
Interestingly, the CMF was neutral after the $0.32 area was flipped to support.
The liquidation heatmap of the past three months on CoinGlass did not highlight any notable overhead liquidity clusters.
This meant that short liquidations had not been helping fuel the rally beyond $0.35, as most short liquidations had already been triggered by then.
Until the $0.47 swing high is broken, traders should treat the current rally as a relief rally and anticipate rejection from the $0.41 supply zone.
Final Summary
- Ondo did not retrace toward $0.30 after achieving a breakout past this round-number resistance, showcasing remarkable bullish momentum.
- Traders should treat the current rally as a retracement until this view is proved wrong.
