NOIDA (CoinChapter.com)—Ondo Finance’s real-world asset token, ONDO, reached a new all-time high on March 25, after rallying nearly 155% in the seven days since March 19.
Ondo Finance is a decentralized protocol that helps users tokenize real-world assets (RWAs) by representing ownership in tokenized securities and financial products on the blockchain.
To recap, a real-world asset (RWA) refers to physical or tangible assets, such as real estate, commodities, or financial securities, etc., that have intrinsic value in the physical world.
Recently, Blackrock launched a tokenized fund called the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The announcement put RWAs into spotlight, helping tokens like ONDO attract buyers.
Whales Take ONDO Price Rally Forward
The Ondo Finance token benefitted from the increased investor interest, helping propel the token’s price action to record highs.
Moreover, ONDO whales withdrew over 9.4 million tokens from various exchanges. Market participants usually follow whale wallet movements closely since they can often change the direction of the market.
Therefore, whales moving their ONDO holdings away from exchanges indicated a hodling mindset among investors. As such, retail traders likely entered the market, hoping to enter the ONDO rally before it went higher, inadvertently pushing the token’s price upward.
A crypto trader, Altcoin Sherpa, noted that he sold quite early and expressed interest in re-entering the token. However, it might likely be a shilling post, hoping to push ONDO price higher.
Bears Booking Profits
Following charting a new ATH near $0.98 on March 25, the Ondo Finance token pared gains heavily as bears started booking profits. The bears are trying to push the token below the $0.9 price mark, and it looks like they might be successful.
A move below $0.9 could cause traders to lose confidence in the token’s rally, forcing more sell-offs and a drop to support near $0.75 for the ONDO token.
Moreover, breaching the immediate support might see the token’s price test the 0.236 FIB support near $0.552 before recovering.
Meanwhile, the recent rally pushed ONDO’s relative strength index into the overbought region, clocking at 75.82 on the daily charts. The RSI is a momentum indicator for measuring asset price movements to identify overbought or oversold conditions.
Overbought RSI levels and upward-moving average trendlines indicate a strong presence of bulls in the market. However, traders often consider an overbought RSI level a bearish signal since the occurrence usually precedes a bearish correction or consolidation phase for the underlying token.
If the Ondo Finance token overcomes the bearish cues, its price could rise to the resistance near $1.07. Breaking and consolidating above $1 might attract more buyers to the market, helping the token target the resistance near $1.3 before retreating.
