Ondo drops 7.85% as sell signals persist and volatility spikes
Ondo (ONDO) is currently trading at $0.4295, positioned above the MA-20 ($0.3965) but below the MA-50 ($0.4475) and well under the MA-200 ($0.7636). This setup suggests lingering short-term bullish momentum but medium- and long-term downside pressure, with the nearest dynamic support around the Ichimoku Kijun level at $0.4174 and resistance likely at the MA-50 ($0.4475).
Highlights
- Ondo will unlock approximately 1.9 billion ONDO tokens, worth over $840 million, in January, increasing circulating supply by 57%.
- This major token unlock event will substantially test market demand as a significant share of ONDO's released supply enters circulation.
- Ondo is expanding real world asset tokenization and has strengthened its institutional presence, notably on the Solana blockchain.
High token unlock to strain supply as Solana expansion deepens
Ondo is preparing for a significant token unlock event, with approximately 1.9 billion ONDO tokens — worth over $840 million at current prices — scheduled to unlock in January, representing 57% of its released supply. This will substantially increase circulating supply and test market demand. The project is also expanding its real world asset tokenization activities and has strengthened its institutional footprint, particularly on the Solana blockchain.
Intraday selloff and mixed signals highlight volatility and divergence
Momentum indicators are mixed: daily ADX signals active but bearish pressure, while the MACD remains neutral, hinting at indecision. Both the RSI (59.39) and Bull/Bear Power point to recent buyer activity, yet the Stochastic RSI and CCI are firmly in overbought territory, flagging caution. The daily drop of 7.85% occurred without a price gap, and the current quote sits near today’s low in a tight range, suggesting high intraday volatility and selling pressure soon after the open. Oscillator and momentum signals are diverging, as intraday weakness contradicts the broader daily buyer push.
Sideways movement favored as weekly signals indicate further risk
Looking ahead, the expected price corridor for the next week is $0.4277 – $0.4365, a typical volatility band relative to current levels. The probability of further upside remains very low (less than 20%), making further declines more likely given persistent weekly sell signals from the Moving Average, MACD, ADX, and RSI. In the baseline scenario, ONDO is likely to fluctuate sideways between support at $0.4174 and resistance near $0.4475. A bullish break above resistance may prompt short-term buying, while a move below support would signal risk of additional losses.
Previously it was reported that ONDO is exhibiting short- and medium-term bullish momentum above its 20- and 50-day moving averages, but remains well below its 200-day average, indicating lingering pressure on the long-term trend. Momentum signals are mixed, with the RSI and other oscillators pointing to overbought conditions and short-term pullback risk, while the immediate support lies near $0.4490 and resistance is close to $0.47, setting the stage for sideways movement unless a breakout occurs.
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