- A U.S whale has begun accumulating ONDO in anticipation of a breakout from a bullish pattern, signaling growing confidence
- Technical indicators suggested the market remains bullish, with a strong likelihood of sustained gains in the coming days
Over the last 24 hours, ONDO has surged by 13.26% on the charts, pushing its price to $1.80. Traders who bought the asset last week benefited from this rally, with gains now up 1.31% from its previous low.
While ONDO is expected to outperform and potentially add to its recent gains, declining trading volumes poses a risk. Especially as they may indicate waning buying interest.
U.S whale accumulates ONDO
A major U.S investor has acquired a significant amount of ONDO over the last 24 hours, highlighting renewed interest in the asset and the potential for a price rally. The investor appears to be seizing what they view as an undervalued opportunity.
This particular purchase was carried out through Coinbase, the top cryptocurrency exchange in the United States. The whale bought 1,085,120 ONDO tokens worth $1.83 million within this timeframe.
Source: X
Such large-scale acquisitions often trigger interest among retail traders and other investors. These transactions signal that the market may be approaching a higher price point, encouraging further demand.
ONDO targets new high
On the price front, ONDO broke out of the accumulation zone of a bullish flag pattern. Here’s where it previously traded within a defined range, while trending south. The rally began after the asset breached the support level of this zone, tapped a demand area below, and gained momentum from a recent whale purchase.
The price chart indicated that ONDO is likely to replicate the first leg of its rally before entering the accumulation phase. This move could result in a 49.63% price hike, pushing the asset to $2.44 and setting a new all-time high.
Source: Trading View
Technical indicators seemed to confirm the bullish outlook. The Parabolic SAR (Stop and Reverse) revealed a string of dots below the price, signaling strong upward momentum and increasing buying pressure.
Similarly, the AROON indicator revealed that the orange line (100%) was above the blue line (37.25%), indicating robust market demand and a sustained uptrend.
Source: Trading View
AMBCrypto did find some concerns with ONDO though as its trading volume did not align with the rally’s strength. This discrepancy pointed to limited market participation.
Are buyers losing momentum?
ONDO gained by 13.26% in the last 24 hours, and yet its trading volume dropped by 10.75%, bringing the total volume down to $620.09 million.
A price surge without a corresponding hike in volume often indicates underlying buyer exhaustion. In this case, the imbalance suggested that the rally may lack strong support, leaving the price vulnerable to a potential decline.
For ONDO’s rally to be sustained, a simultaneous hike in both price and volume is essential. Without this alignment, the upward momentum may not hold.
