Ondo [ONDO] was up 1.58% in a day and 21% over the past week as the real-world asset (RWA) platform token breached a key resistance at $0.297.
By the way, the $0.30 psychological level had served as a resistance zone since the 14th of February.
The altcoin formed a range between $0.25-$0.30, and finally achieved a decisive bullish breakout on Monday, the 4th of May.
Price move came after the announcement in a post on X that Ondo had been selected in the DTCC’s Working Industry Group to “advance tokenization in the U.S.”. It was building a tokenization service that would bring the core of U.S. capital markets onchain.
Assessing the potential of ONDO price trends
The growth of Ondo in the past two years was extremely bullish for investors with a time horizon of a few years. In fact, the recent announcement sparked a short-term rally, but technical analysis indicated the 1-day timeframe retained a bearish bias.
Moreover, the most recent swing structure break came in January (orange). Based on the downtrend from then, a set of Fibonacci retracement levels was plotted.
It showed that the breakout past $0.30 can take prices as high as $0.413 or even a sweep of the $0.47 highs. However, until the $0.47 high is broken, the swing structure would be bearish.
Therefore, traders can be bullish in the short-term, but shouldn’t hesitate to take profits.
Traders’ call to action- Look to buy the retest
The structure was bullish, the range has been breached, and ONDO’s momentum might flag in the short-term and lead to a pullback. The Fibonacci retracement levels highlighted the $0.286-$0.295 area as the golden pocket.
A drop into this territory would present a buying opportunity. Invalidation would be a continued plunge below the $0.275 swing low on the H4 timeframe.
Traders should also be prepared for the possibility that ONDO reacts strongly from the 50% retracement level at $0.30.
Final Summary
- Ondo was chosen in the DTCC’s Industry Working Group to advance tokenization in the U.S.
- The announcement sparked a rally beyond price highs that have held since the 14th of February.
