While many alternative cryptocurrencies (altcoins) struggle, Ondo (ONDO) continues its impressive upward trajectory. The token, which debuted in January, has seen substantial gains, largely driven by the growing narrative around Real-World Assets (RWA) and institutional interest, notably from financial giant BlackRock.
Understanding Ondo’s Strong Performance
Ondo price reached a new all-time high (ATH) of $1.05 on March 31 and has maintained its momentum since. The token has surged by 433% since the beginning of February, consistently forming higher highs and higher lows, signaling robust bullish sentiment.
A key catalyst behind this performance is the involvement of BlackRock. After filing for a spot Bitcoin ETF in mid-2023, the asset management firm helped catalyze a broader crypto market rally. More recently, on March 20, BlackRock launched a tokenized fund on Ethereum, drawing significant attention to the RWA sector. Coinciding with this announcement, Ondo found a local bottom and began a 172% upswing.
The ongoing RWA narrative, amplified by the “BlackRock effect,” remains a primary driver of Ondo’s price action. As a result, ONDO’s 30-day correlation with Bitcoin has dropped to 0.34—a level not seen since mid-February, indicating it is moving somewhat independently of BTC’s fluctuations.
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Key Levels and Possible Scenarios for ONDO
To assess where Ondo might be headed, several technical and on-chain factors should be considered:
- Horizontal Support Levels: Key supports are found at $0.633, $0.433, $0.282, and $0.214.
- Trendline Support: An ascending trendline connecting major swing lows has served as a dynamic support level.
- Consolidation Zone: The price has been oscillating between $0.693 and $0.977 for nearly a month.
This period of consolidation could lead to either a continuation of the rally or a short-term pullback. Assets with strong fundamentals—not purely driven by hype or retail FOMO—often experience corrections that shake out late buyers and allow savvy investors to accumulate at better prices.
Historical liquidity cleansing events, such as those seen in Bitcoin on March 11, August 14, and January 22 of 2023, illustrate this pattern. For ONDO, the March 19 crash served a similar purpose. Although the April 12 downturn also wiped out some overleveraged positions, another correction remains possible.
Two potential scenarios emerge:
- A drop below $0.633 followed by a rebound to new highs.
- A new high followed by a correction below $0.633.
Momentum indicators like the Relative Strength Index (RSI) and Awesome Oscillator (AO) are currently near their midpoints, reflecting a balance between buying and selling pressure.
What On-Chain Data Reveals
Santiment data shows that ONDO’s 7-day Market Value to Realized Value (MVRV) ratio is near zero, indicating that recent buyers are breaking even. However, the 30-day MVRV sits at -9.39%, meaning investors who purchased in the past month are at an average loss of 9.39%.
Positive MVRV values often signal potential selling pressure from unrealized profits, while negative values can indicate accumulation opportunities as smart money buys from underwater holders.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model highlights the next major resistance between $0.862 and $0.885. In this range, approximately 2,300 addresses acquired 365 million ONDO at an average price of $0.875. A break above this zone could pave the way for further gains.
On the support side, nearly 1,900 addresses bought 301 million ONDO between $0.743 and $0.767, with an average entry of $0.759. If the price declines, these holders may increase their positions, providing support and reducing sell pressure.
Frequently Asked Questions
What is driving Ondo’s price increase?
Ondo’s rally is largely fueled by growing institutional interest in Real-World Assets (RWA), particularly following BlackRock’s entry into the tokenized asset space. This has strengthened investor confidence and buying activity.
What are the important support levels for ONDO?
Major support levels to watch are $0.633, $0.433, $0.282, and $0.214. These levels have historically provided buying interest and could serve as accumulation zones in case of a downturn.
Should investors be cautious about a market correction?
Yes. Despite the strong bullish trend, a sudden market-wide sell-off or loss of momentum could trigger a correction. Traders should monitor key supports and consider risk management strategies.
How does Ondo’s performance relate to Bitcoin?
While ONDO has shown lower correlation with Bitcoin recently, a sharp decline in BTC could still negatively impact altcoins, including ONDO. It’s important to watch overall market sentiment.
What is the significance of the MVRV ratio for ONDO?
The MVRV ratio helps gauge market profitability. A negative 30-day MVRV suggests recent buyers are at a loss, which may indicate a potential buying opportunity before a rebound.
Can Ondo sustain its current price levels?
While the fundamentals remain strong, crypto markets are volatile. Breaking above the $0.885 resistance could lead to new highs, but failure to hold support may result in a deeper correction.
Conclusion
Ondo’s current market performance highlights both opportunity and risk. While the RWA narrative and institutional backing provide strong foundational support, traders should remain aware of possible pullbacks. Key levels and on-chain metrics offer valuable insight for making informed decisions.