ONDO Price: Buy the Dip or Prepare for a Drop?
Ondo (ONDO) Faces Critical Juncture: Price vs. Metrics
Ondo [ONDO], the governance token for the Ondo DAO, is currently testing a key support level around $0.87, a threshold it's maintained since mid-July. As the broader altcoin market struggles for upward momentum, ONDO's situation presents a mixed bag of signals.
Recent weeks have seen Bitcoin [BTC] and Ethereum [ETH] lacking clear directional trends, impacting the entire altcoin market. ONDO's daily chart reveals a bearish market structure. The token has been forming lower highs for the past three weeks, and its Chaikin Money Flow (CMF) is significantly below -0.05, indicating strong capital outflows and seller dominance.
Continued selling pressure could push ONDO below the $0.87 support level.
Source: ONDO/USDT on TradingView
ONDO: Undervalued or a Falling Knife?
Despite the bearish signals from the price chart, on-chain metrics suggest ONDO might be undervalued.
Source: Santiment
- Network Growth & Active Addresses: Santiment data reveals stable network growth and daily active addresses since late July, suggesting the network isn't losing traction.
- Age Consumed: The age consumed metric, which tracks the movement of dormant tokens, remains relatively quiet. A surge here often precedes sell-offs, and its absence is a positive sign.
Source: Santiment
Supply distribution data shows consistent buying pressure from smaller wallets (holding up to 1 million ONDO), indicating accumulation. Larger wallets (1M-100M) have slightly decreased their holdings over the past ten days.
Source: Glassnode
The Spent Output Profit Ratio (SOPR) currently stands at 0.98. Values below 1 suggest holders are selling at a loss, potentially indicating an undervalued asset. The SOPR has largely remained between 0.9 and 1 since late July, further supporting this idea.
The Verdict
The conflicting signals – bearish technicals versus potentially undervalued on-chain metrics – make ONDO a high-risk, high-reward play. The CMF indicates that any buying should be approached with caution. As always, do your own research before investing.
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