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Ondo Finance is emerging as a major player in the real-world asset tokenization space, positioning itself as one of the altcoin contenders likely to shine in this bull cycle. Despite its strong fundamentals, the start of 2025 has been difficult for ONDO, as the coin has seen a massive sell-off that has seen its value drop by 33% since January 4. This downward price movement has raised questions among some investors, but optimism is starting to build.
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Ali Martinez, a top cryptocurrency analyst, recently shared compelling data that may indicate a turnaround in ONDO. According to Martinez, ONDO’s funding rate has dropped to -60%, a rare phenomenon that indicates exchanges are paying traders to buy into the token. Such an environment often reflects very bearish sentiment in the short term, which could lead to sharp reversals as market conditions normalize.
Ondo Finance could present an interesting opportunity for investors looking to capitalize on the growing role of real-world asset tokenization in the cryptocurrency space. As metrics point to a potential rebound, all eyes are on ONDO to see if it can recover and perform as expected in this bull cycle.
Greedy bears pay the price
Ondo Finance has consolidated its position as a premium project in the Real Assets (RWA) sector, attracting significant investor interest during the post-election rally in November 2024. During this period, ONDO’s price rose by more than 260% in just weeks, demonstrating its ability to deliver returns Tremendous in favorable market conditions. Despite recent price declines, Ondo remains a very attractive altcoin due to its strong fundamentals and leadership in RWA.
Senior analyst Ali Martinez Interesting data was recently shared about X Which sheds light on the current situation of ONDO. According to Martinez, the token’s funding rate reached -60%. This means that exchanges actually pay traders to take long positions in ONDO, creating a unique opportunity.
These maximum funding rates typically indicate high selling pressure, yet the price has not collapsed under the weight of bearish sentiment. This dynamic often indicates fundamental strength and the possibility of a sharp reversal.
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This situation may indicate overconfidence among short sellers who are betting aggressively against ONDO. If buying pressure resumes and overcomes selling trades, it could lead to a squeeze, pushing the price higher. For investors looking for opportunities in the altcoin market, Ondo Finance’s current setup offers a compelling mix of risk and reward.
Navigating volatility amid bearish sentiment
Ondo Finance (ONDO) is currently trading at $1.20, reflecting the volatile price trajectory over recent days. The token saw sharp movements, falling as low as $1.09 before rebounding to a local high of $1.30. Despite these fluctuations, bears appear to be maintaining control, overshadowing the broader market recovery.
For the bulls to regain momentum and stage a reversal, reclaiming the $1.35 mark is crucial. This level acts as a short-term resistance point that could signal renewed buying interest if it is crossed. Furthermore, the $1.50 level represents the next important target, which could represent a move to the upside if achieved and held as support.
Conversely, failure to maintain the $1.20 level could exacerbate bearish sentiment, putting additional pressure on the price. A continued breakdown below this level may open the door to further declines, testing low demand areas and dampening investor confidence.
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While ONDO’s fundamentals and market potential remain strong, short-term price action suggests a cautious approach. The bulls need to act decisively to reclaim key levels and shift the narrative towards recovery, while the bears continue to take advantage of market uncertainty to keep the token under pressure.
Featured image by Dall-E, chart from TradingView