Ondo: weak technicals and limited upside led to 30% daily drop

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Ondo drops 30.05% today amid selloff

Highlights

Ondo (ONDO) plunged 30.05% to $0.6166, trading below its MA-20, MA-50, and MA-200, indicating sustained bearish momentum across all timeframes.
Ondo announced a $50 million partnership with STBL to leverage its USDY token as collateral for the USST stablecoin, aiming to boost compliance and institutional adoption.
Technical indicators remain broadly bearish with resistance near $0.9762 and potential downside to $0.36, while the likelihood of a short-term bullish reversal is under 20%.

Institutional adoption hopes rise amid stablecoin partnership and new listings

Ondo has announced a $50 million partnership with STBL to utilize its USDY token as primary collateral for issuing the next-generation stablecoin USST. This move is expected to boost Ondo’s standing in stablecoin compliance and institutional adoption by leveraging USDY's backing of U.S. Treasuries and cash deposits. Additionally, Binance Wallet launched a Pre-TGE Prime Sale giving Ondo exposure to broader investor participation, while a Binance-related clarification regarding Hyperliquid had no direct impact on ONDO.

Downward momentum prevails as resistance firms and signals stay bearish

Technically, ONDO faces significant headwinds: all key moving averages are well above the current price, showing downside pressure in the short, medium, and long term. Resistance is seen near the Ichimoku Kijun at $0.9762, while dynamic support is absent with measured moving averages above market price. Most daily momentum indicators remain bearish, with the MACD indicating a strong sell and the ADX confirming a solid trend but suggesting a potential divergence. RSI is neutral to slightly bullish at 51.64, but Stoch RSI and CCI indicate an oversold, bearish stance, and the Awesome Oscillator reinforces the negative bias. Intraday signals reveal diverging momentum and a deeply oversold environment.

Limited rebound seen as sideways trend persists and risks remain

In the short term, ONDO is likely to consolidate in a broad sideways range, with an expected price corridor between $0.8385 and $0.9420 and an average near $0.8903 over the next five trading days. The chance of a bullish reversal is low — under 20% based on weekly indicators — and further declines remain probable unless a decisive break above $0.9762 unfolds. A bearish scenario could see the price probing below recent intraday support at $0.36.

Anton Kharitonov, expert at Traders Union, sees ONDO under persistent technical pressure, with all major moving averages positioned above the current price and bearish daily indicators prevailing. Despite recent partnership news and broader investor exposure, Kharitonov remains skeptical about a near-term turnaround, citing low probability for a meaningful reversal and the risk of deeper declines if resistance at $0.9762 is not reclaimed. He believes consolidation in a wide range is the base case, with further downside possible. "Until ONDO breaks convincingly above $0.9762, I remain defensive — current price action is not enough to suggest a sustained recovery."

Last time we reported that investor sentiment around Ondo remained strong as the project gained recognition in real-world asset tokenization. It was also noted that crypto whales accumulating ONDO tokens for potential October gains contributed to increased market focus and institutional confidence.

Source of Data: ONDO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.