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WAVE – RWA Cryptocurrencies Bounce Above $1: June 20, 2024 Analysis
After reaching its all-time high, ONDO faced selling pressure that drove its price to $1. Let’s examine ONDO’s future prospects together.
ONDO price situation
The launch of the ONDO cryptocurrency was more than satisfactory. After reaching the historic low of $0.08400, the cryptocurrency recorded a performance of more than 1,600%. ONDO subsequently broke through its highs at $0.30, $0.60 and then $1 before marking its ATH (all-time high) just below $1.50. It is from this last price level that the cryptocurrency faced downward pressure, bringing its price back to $1. Luckily for the ONDO price, this price level acted as support. The recent decline therefore already seems on the verge of being recovered.
At the time of writing, ONDO is trading around $1.26. Buyers seem to dominate, as the ONDO price has reclaimed the identified value zone above $1. Interestingly, the cryptocurrency’s rebound occurred on the 50-day moving average. In the eyes of investors, this can be seen as a reassuring sign for the continuation of ONDO’s uptrend. On the momentum side of the cryptocurrency, a recovery is observed, visible both from the price itself and from the oscillators. Not surprisingly, this can support short-term buying beliefs.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, a coach at Family businessa community of thousands of proprietary traders active since 2017. You will find lives, educational content and support on the financial markets in a professional and friendly atmosphere.
Focus on Derivatives (ONDO/USDT)
The open interest of ONDO/USDT perpetual contracts has generally followed the direction of the underlying price. This indicates a healthy market, generally dominated by buyers. However, it is important to note that the liquidation data mostly shows liquidations of buy positions to the benefit of sellers. Also, looking at the financing rate, this has been negative for a few days. Each of these elements demonstrates recent selling pressure.
The one-month ONDO/USDT liquidation heatmap reveals that the $1.40 liquidation zone was reached before the latest drop in ONDO prices. Therefore, it appears that this level has sparked selling interest. Now, the most significant liquidation zone is above the current ONDO price, around $1.36. The price approaching this level could trigger a massive amount of orders, increasing the risk of a period of high volatility. This area, therefore, represents a crucial point of interest for investors.
Hypothesis for the ONDO price
- If ONDO price remains above $1, we could anticipate a bullish recovery to $1.40. The next levels to consider if the bullish move continues would be, firstly, the ONDO high, around $1.52, and higher, the $1.75 level. At this stage this would represent an increase of more than 40%.
- If the ONDO price fails to stay above $1, we could consider a yield around $0.94. The next support to consider if the bearish move continues would be around $0.85. At this stage this would represent a drop of around 33%.
Conclusion
ONDO has shown remarkable resilience after a promising launch, with support from buyers and positive signs for a resumption of the uptrend. Everything suggests that its growth potential is not yet at its peak. However, some indicators seem to indicate pessimism, leaving room for the possibility of a continuation of the downward movement in the short term. Therefore, it will be crucial to closely observe the price reaction at different key levels to confirm or invalidate current assumptions. It is also important to remain vigilant against potential “fake outs” and “squeezes” in every scenario. Finally, remember that this analysis is based exclusively on technical criteria and that cryptocurrency prices can evolve rapidly based on other more fundamental factors.
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Family business
Family Trading is a community of traders active since 2017 that offers Lives, educational content and contacts with the financial markets, not celuting cryptocurrencies with their friends Elie FT, passionate investor and trader on the cryptocurrency market.
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