Ondo [ONDO] broke out of a falling wedge pattern on the daily chart, climbing 4.31% to hit $0.7122 at the time of writing.
This pattern can be seen as a sign of a change from a downtrend to an uptrend – a sign that ONDO is likely to have a sustained rally.
The key question is whether this breakout will continue to push ONDO’s price higher. Can ONDO build momentum for further gains in the coming days?
Source: Captain Faibik/X
Technical Analysis – RSI and MACD Give Mixed Signals
The altcoin's technical indicators show a mixed outlook. ONDO's Relative Strength Index (RSI) reads 62.25, suggesting the asset may be approaching overbought conditions.
However, there still seems to be room for further upside on the chart.
The Moving Average Convergence and Divergence (MACD) indicator at the time of writing is approaching a bearish crossover.
While the chart shows that there is still time before this happens, a bearish wave could hit the market once it does.
Therefore, traders should be cautious about the overall market situation.
Source: TradingView
On-chain Signals – Can Investors Expect More Profits?
On-chain metrics reveal a somewhat negative outlook. For example, according to IntoTheBlock, net network growth has decreased by 1.23% – a sign that fewer participants are joining the ONDO ecosystem.
Furthermore, concentration fell by 0.03%, highlighting the lack of significant investment from large investors. Large transactions fell by 2.90%, seemingly reinforcing the idea of a more cautious approach.
The “In the Money” index remains neutral at 0.01%, indicating that most investors are at break-even at the moment.
Overall, this seems to contribute to the uncertainty about ONDO's future moves.
Source: IntoTheBlock
ONDO Liquidation and Long/Short Ratio: What Do Traders Think?
Finally, the liquidation chart shows that $12.08K in short positions were liquidated compared to $3.31K in long positions. This highlights the selling pressure, according to data from Coinglass data.
However, the long/short ratio is fairly even at 0.99, with 50.25% short and 49.75% long. Therefore, traders seem to be evenly split on whether ONDO will continue to rise.
Source: Coinglass
What next for ONDO?
In conclusion, the breakout of the ONDO falling wedge has sparked hopes for a bullish breakout. However, conflicting technical and on-chain signals suggest that traders should remain cautious.
Despite the potential for a sustained move higher, the market is currently divided in two. Investors should closely monitor key indicators before making major decisions.
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