ONDO, a crypto token, experienced a significant gain of 19.8% on Wednesday, breaking out of a two-month descending channel pattern. This breakout, along with above-average trading volume, indicated a potential buying opportunity for market bulls. However, despite the positive price movement, the market structure on the 1-day chart remained bearish. Technical analysis identified the 78.6% Fibonacci retracement level at $0.915 as a key resistance level that needed to be surpassed for a bullish shift in the structure.
Despite the bearish market structure, metrics suggested a buying opportunity for ONDO bulls. The in/out of the money around price metric highlighted two nearby support zones at $0.815 and $0.791, which were above the falling channel highs. This indicated that a retest of these levels or the channel as support could present a buying opportunity in the near future. Additionally, the daily active addresses metric showed a recent climb in activity after a decline in the second week of March, indicating a potential increase in usage and demand for ONDO.
Further analysis revealed that the 90-day mean coin age for ONDO has been on a steady uptrend since January, suggesting that coins were transacted less frequently. The rising mean coin age, coupled with spikes in the dormant circulation metric, indicated accumulation of ONDO tokens. The 90-day MVRV ratio was also negative, indicating that short to medium-term holders were facing losses. These accumulation trends, along with the breakout from the two-month channel pattern, pointed towards a possible buying opportunity for investors.
While the accumulation trends and breakout from the descending channel pattern suggested a potential buying opportunity for ONDO, investors were advised to remain cautious due to the overall bearish sentiment in the market. It is important to consider the risks involved in cryptocurrency trading and conduct thorough research before making investment decisions. As the market continues to fluctuate, keeping a close eye on key metrics and technical analysis can help investors make informed choices regarding their trading strategies.
