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Ondo Finance has faced significant challenges in recent weeks, with its price falling more than 30% from its all-time high of $2.14. Despite the recent downturn, many analysts remain optimistic about ONDO’s potential for recovery, citing its strong performance earlier this cycle as evidence of its resilience. As one of the best-performing altcoins, ONDO has consistently attracted investor interest, leading to speculation about its next move.
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However, caution is warranted. Popular analyst Ali Martinez recently shared a technical analysis warning that ONDO could be at risk of further correction. Martinez highlights the possible formation of a head and shoulders pattern on the price chart, which is a bearish signal often associated with trend reversals. If this pattern plays out, it could lead to increased selling pressure and a deeper pullback.
The days ahead will be crucial for Ondo Finance as it navigates this pivotal moment. Investors will be watching closely whether the token can defy bearish signals and reignite bullish momentum or whether the fearsome pattern will confirm, leading to additional declines. For now, ONDO’s future hangs in the balance, with market sentiment and technical indicators offering mixed signals about its short-term path.
ONDO critical demand testing
Ondo Finance faced a major correction after rising strongly earlier in the session, and is now testing crucial demand levels at key price points. The price of the token stopped at its previous all-time high, around $1.50, which now acts as a pivotal support level. If it holds above this mark, bullish momentum could return, which could pave the way for a renewed uptrend.
However, senior analyst Ali Martinez said Raised concerns with technical analysis This indicates that ONDO may form a bearish head and shoulders pattern. This pattern, if confirmed, usually indicates a trend reversal and can lead to increased selling pressure.
Martinez warns that a decisive close below $1.48 could trigger a sharp 30% correction, pushing ONDO’s price down to around $1.05. Such a move would represent a major setback for the token and its investors.
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To negate this bearish scenario, ONDO must reclaim the $1.86 level as support, a move that would signal strength and restore confidence in the upward potential of the asset. Until then, the market remains at a critical juncture, with traders closely monitoring the price action for clues about ONDO’s next direction. The coming days will be crucial in determining whether ONDO is able to recover or will face further downside risks.
Technical Analysis: What to Expect
Ondo Finance (ONDO) is currently trading at $1.49 after successfully testing the critical support level of $1.46 highlighted by Senior Analyst Ali Martinez. This level has proven to be an important line of defense for ONDO, reflecting the strong buying interest at this price. The token appears stable for now, but market participants remain cautious, as broader market conditions may impact ONDO’s trajectory.
The recent resilience at $1.46 is encouraging, suggesting ONDO may be building a foundation for a potential recovery. However, a market-wide correction could put additional pressure on ONDO, which could lead to a decline in its price and a retest of critical demand levels. Investors are closely monitoring key technical levels to confirm a bullish recovery.
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For ONDO to regain bullish momentum, reclaiming the $1.70 level in the coming days is essential. A decisive move above this indicator would signal renewed strength, paving the way for an upward recovery and possibly a retest of previous highs. Until then, ONDO remains in a sensitive position, as traders monitor broader market sentiment and the asset’s ability to maintain current support levels. The next steps will be crucial in determining whether ONDO can resume its uptrend or face continued consolidation.
Featured image by Dall-E, chart from TradingView