ONDO Drops 18% After a Brief Rally as Momentum Fades

Ondo Finance (ONDO) briefly surged almost 20% yesterday, but the gains were reversed within 24 hours. Despite this pullback, ONDO remains a major player in the real-world asset (RWA) sector.

Technical indicators suggest momentum is slowing, while whale activity has declined for the first time in over two weeks. Whether ONDO can recover and push past key resistance levels or continue its correction toward lower support zones will depend on market sentiment and potential future developments regarding its inclusion in the reserve.

ONDO RSI Is Going Down After Reaching Its Highest Levels In 3 Months

ONDO surged in momentum yesterday, pushing its Relative Strength Index (RSI) to 76.1 before cooling off to 54.8.

The RSI is a widely used momentum oscillator that measures the speed and magnitude of price movements on a scale from 0 to 100. Readings above 70 indicate overbought conditions, often signaling a potential pullback.

Meanwhile, readings below 30 suggest oversold conditions that may lead to a rebound. With ONDO’s RSI briefly crossing 70 for the first time in three months, traders took it as a sign of strong bullish momentum before the recent retracement.

ONDO RSI. Source: TradingView.

Now sitting at 54.8, ONDO’s RSI has dropped back to neutral territory, reflecting a slowdown in buying pressure. This suggests that the recent rally may have been overextended, leading to profit-taking and a potential period of consolidation.

If RSI stabilizes above 50, ONDO could maintain its bullish structure and attempt another move higher.

However, if it continues to decline toward 40 or lower, it could indicate weakening momentum, increasing the chances of further downside.

The Number Of ONDO Whales Dropped For The First Time Since Mid-February

The number of ONDO whales – wallets holding between 1 million and 10 million ONDO – had been steadily increasing since February 17, rising from 203 to 221 by March 1.

However, this trend reversed in the last few days, with the number of whales now dropping to 214. Tracking whale activity is crucial because large holders can significantly impact price movements through their buying or selling decisions.

A rising number of whales often signals accumulation, suggesting confidence in ONDO’s long-term potential, while a decline could indicate distribution, increasing the risk of selling pressure.

Addresses holding between 1 million and 10 million ONDO. Source: Santiment.

Despite the recent drop, the current number of whales remains high compared to previous months. That suggests that broader confidence in the asset is still intact.

However, this is the first decline in over 15 days, which could signal that some large holders are taking profits or repositioning. If this trend continues downward, the RWA coin could face increased selling pressure, potentially leading to further corrections.

On the other hand, if whale numbers stabilize or start rising again, it could indicate renewed accumulation. This would suggest a potential price rebound.

ONDO Falls Below $1

The broader market rally pushed ONDO’s price close to $1.20 yesterday before a correction began, signaling that traders were taking profits.

While ONDO remains a key player in the real-world asset (RWA) sector, its short-term price movement will depend on whether the current pullback deepens or stabilizes.

ONDO Price Analysis. Source: TradingView.

If the correction continues, it could test support around $0.95. Further declines could potentially bring it down to $0.90 or $0.88. If it drops below $0.80, this would be the first time that has happened since November 2024.

However, if bullish sentiment returns, ONDO could regain momentum, especially if the US takes a more crypto-friendly stance on RWAs or if ONDO is eventually added to the US strategic crypto reserve.

In that scenario, it could break through resistance at $1.26 and $1.44, with a strong rally potentially sending it toward $1.66.