Ondo Finance price drops amid rising whale activity: what’s next?

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As a seasoned researcher with over two decades of experience in the dynamic world of finance and cryptocurrencies, I have seen bull runs come and go, but the recent one for Ondo Finance has been quite intriguing. The token’s retreat for two consecutive days is not unusual in this market, but the signs of whale activity are concerning.

Over the last two days, the price of Ondo Finance’s token has dropped due to a pause in the ongoing cryptocurrency rally and large investors (whales) choosing to offload their holdings.

The price of Ondo (ONDO) dipped to $0.97, representing a 13.5% decrease from its peak this week, suggesting it’s entering a period of technical adjustment or correction.

The primary reason behind the recent selling spree appears to be the persistent instability within the cryptocurrency market, as Bitcoin‘s value dropped from approximately $100,000 to $92,000.

Simultaneously, there appear to be indications that a significant whale is disposing of the coin. Data from Etherscan reveals that one such whale transferred 1.58 million coins to Gate.io, which is often an action taken by crypto holders before they intend to sell their assets, as moving them to exchanges is a common practice prior to selling.

Another holder moved ONDO tokens worth $658,265 to the same exchange. Altogether, whales moved coins worth almost $7 million to exchanges, likely to take profits.

Over the last few days, the growth of Ondo’s network has been relatively sluggish, with the total value locked staying steady at $643 million. A large portion of these assets, around $452 million, are invested in the US Dollar Yield, offering a return of 4.90%. The remaining $198 million is placed in US Treasuries, providing a yield of 4.59%.

As an analyst, I’ve recently noticed that the developers have emphasized that the yield from Ondo’s tokenized treasury assets surpasses that of well-known alternatives like Franklin Templeton’s FOBXX and Blackrock’s BUIDL.

At present, among all tokenized U.S. Treasury products, Ondo’s offerings provide the highest yield. Specifically, $USDY stands at a yield of 4.9%, while $OUSG offers a slightly lower yield of 4.64%. This information is sourced from @RWA_xyz. However, it is important to note that neither USDY nor OUSG are registered under the U.S. Securities Act of 1933, as amended (“Act”).

— Ondo Finance (@OndoFinance) November 21, 2024

In the forecasted future expansion, Ondo Finance belongs to the sector known as tokenization, with experts projecting a substantial increase in its size. According to a report by BCG, it’s anticipated that approximately $16 trillion worth of assets will be tokenized by the year 2030.

Ondo price technical analysis

Today’s graph indicates that the Ondo token reached a high of $1.12 during the latest bull market. However, it has since pulled back, now trending towards the lower boundary of an ascending channel formation. Despite this, the coin continues to hover above its 60-day and 25-day moving averages, but it has dipped slightly below the 38.2% Fibonacci Retracement point.

ONDO continues to hover above a significant support point at $0.8740, which was its highest point on September 27. This suggests that it might revisit this support level before resuming its upward trajectory. If it manages to surpass this month’s high of $1.1200, it could signal more growth, possibly reaching the year-to-date peak of $1.50, approximately 53% higher than its current position.

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2024-11-26 17:00