Ondo Finance [$ONDO] token prices were down 5.44% over the past week. It was reported that a team-linked wallet sent 4.019 million tokens worth around $1.4 million to the centralized exchange Coinbase.
While the transfer does not confirm a sale, it does signal increased $ONDO supply in the near-term, especially given the momentum of the past week.
Ondo crypto token prices were back at a key support zone after breaking out of a bullish triangle pattern and climbing to the $0.42 supply zone.
In other news, Ondo Finance announced in a blog post that they submitted a no-action request to the SEC. In a limited set of circumstances, the relevant securities entitlements would also be represented in tokenized form on the Ethereum Mainnet, and held by onchain custodian BitGo to facilitate recordkeeping.
The SEC has not publicly responded to the request.
Assessing the $ONDO downturn from the triangle pattern breakout
In a report towards the end of July, AMBCrypto warned of a potential bearish turn in the Ondo crypto token price action. The cited reason was a lack of steady buying pressure.
Since then, $ONDO has slid by close to 24% in value, from $0.427 to $0.325 at the time of writing.
Since May, the trading volume has declined. The breakout from the triangle pattern was not accompanied by a surge in buying volume, resulting in the price drawdown.
Moreover, the 1-day timeframe’s swing structure remained bearish. Therefore, traders can maintain their long-term bearish expectations until Ondo crypto closes a daily trading session above the $0.47 swing high.
Short-term Ondo crypto price expectations
The cumulative long leverage below $0.322, down to $0.302, significantly outweighed the cumulative short leverage overhead. There was a cluster of high-leverage short liquidations around $0.342.
However, because of the higher long leverage, it appeared likely that $ONDO would fall toward $0.30 before seeing any bounce.
This is what short-term traders can expect over the next few days. A price bounce thereafter would depend on incoming capital flows and an uptick in buying pressure.
Final Summary
- Ondo tokens worth $1.4 million were sent to Coinbase recently, and the bullish breakout from the triangle pattern has lost its momentum.
- The long-term swing structure was bearish, and the short-term price expectations involved a slide to the $0.30 area.
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