ONDO Faces Bearish Pressure as Whales Reduce Holdings

ONDO Price Struggles Amidst Whale Pullback and Technical Weakness

ONDO is facing strong downside pressure, with its price declining over 5% in the last 24 hours and more than 19% over the past month. The cryptocurrency's market cap now stands at approximately $2.5 billion, placing it behind competitors like Chainlink and Mantra. Recent technical indicators and whale activity suggest the weakness may persist, despite signs of a potential recovery.

ONDO’s RSI Rebounds but Market Remains Fragile

The Relative Strength Index (RSI) for ONDO currently sits at 34 after rebounding from an earlier dip to 27.5. Just two days ago, the RSI was at 54.39, demonstrating a sharp shift in momentum. The RSI, a key momentum oscillator, helps assess whether an asset is overbought or oversold.

Typically, an RSI below 30 indicates oversold conditions, suggesting a potential bounce, while readings above 70 signal an overbought market with a risk of correction. ONDO's RSI, now hovering near the lower threshold, suggests that while the steepest selling pressure may have eased, the market remains cautious.

If ONDO’s RSI continues recovering and surpasses 40 or 50, it could indicate a bullish shift. Conversely, if selling pressure resumes and RSI drops below 30 again, further price declines may follow.

Whale Accumulation Slows, Indicating Bearish Sentiment

The number of ONDO whales—wallets holding between 1 million and 10 million tokens—saw notable fluctuations in late March. Between March 22 and March 26, whale addresses increased from 188 to 195, only to retreat to 191 in recent days.

This pattern is crucial, as large investors significantly impact market sentiment and price trends. When whales accumulate, it often signals confidence, whereas distribution phases may foreshadow corrections. The failure to maintain whale accumulation above 195 suggests bearish sentiment among major holders, possibly indicating profit-taking or risk aversion. This could exert further downward pressure on ONDO’s price in the near term.

Could ONDO Drop Below $0.70 for the First Time Since November?

ONDO’s Exponential Moving Averages (EMAs) currently reflect a bearish formation, reinforcing the ongoing downtrend. If weakness persists, the token may test the crucial support level at $0.73. A decisive break below this level could push ONDO under $0.70—a price level not seen since November 2024.

Comparatively, ONDO has lagged behind other Real World Asset (RWA) tokens like Mantra, adding further pressure to its short-term outlook. However, if sentiment improves and ONDO stages a recovery, the key resistance level to watch is $0.82. A breakout above this threshold could trigger a broader rally, with potential targets at $0.90 and $0.95.

If the broader RWA sector regains momentum, ONDO could even surpass the $1 mark, eyeing major resistance at $1.23.