- If the ONDO head and shoulders pattern dominates, there would be another 17% drop
- ONDO’s total number of addresses in equilibrium over time reflected a steady increase
ONDO’s price action formed a head-and-shoulders pattern in the four-hour time frame. The left shoulder peaked around $1.85, the upside at $2.09, and the right shoulder failed to surpass $1.85, confirming the bearish formation.
This led to a drop below the $1.55 neckline and could confirm the expected 29% decline towards the $1.15 Fibonacci retracement level.
If the bearish pattern continues, a further 17% decline could push ONDO towards $1.05, in line with the Fibonacci level of 0.618. The $1.05 price level could be an opportune buying level as it is one of the best RWA projects with potential for gains.
Source: Ali/X
Conversely, a recovery at $1.55 as support could negate the bearish outlook and hasten a potential recovery towards $1.85. This reversal would likely attract buyers, who might target the $2.09 resistance zone.
The price previously respected the Fibonacci levels, indicating that traders were adhering to the technical settings. Both outcomes were heavily dependent on momentum and broader market conditions, highlighting the pattern’s crucial role in ONDO’s next move.
ONDO on-chain analysis shows…
Tracking ONDO’s total number of addresses with a balance over time reflected a steady increase, indicating growing holder confidence despite a volatile price path. This indicated an accumulation trend even as the price on the chart is experiencing declines.
Historically, an increase in the number of addresses in equilibrium has often preceded stability or ONDO price increases – indicating a potential buffer against the impending 17% decline.
Source: IntoTheBlock
If the trend continues, ONDO could stabilize or recover faster than expected. Conversely, addresses where the balance sheet falls sharply could worsen the price decline, confirming the bearish forecast.
Furthermore, the average holding time for ONDO trades indicated fluctuating investor behavior against the backdrop of price movements. The holding period peaks from mid-2023 to 2024 coincided with periods of price stability or price increases.
However, the marked reduction in holding times towards the end of 2024 appeared to be in line with periods of price declines, indicating an increase in selling pressure.
Source: IntoTheBlock
This recent trend of shorter holding times could indicate an increased risk of a further price decline. If historical patterns hold, longer periods of shorter average investment times often precede price declines.
Conversely, a longer holding period could indicate potential for price stabilization or recovery, which is essential to offset the expected 17% decline.
Social activity
ONDO still remains a top contender, safely occupying the third position with engaged posts at 5.3k and interactions at 1.1 million.
Source:
Social traction for ONDO, despite potential price declines, could point to resilience and continued investor interest, potentially stabilizing or even reversing the predicted 17% price decline.
This enduring social presence may indicate underlying strength, giving ONDO a critical look at the evolving crypto landscape.