The broader cryptocurrency market is currently experiencing pressure, with Ethereum (ETH) seeing a decline of nearly 8% over the past month. This market weakness has also affected altcoins, and the RWA-focused token Ondo (ONDO) has experienced a significant drop of more than 26% during the same period.
Despite this substantial selling pressure, ONDO's daily chart is beginning to exhibit patterns that suggest a more positive development. The current market structure aligns closely with a classic "Power of 3" setup, a recognized trading pattern that often precedes strong trend reversals.
Accumulation Phase
For several months, ONDO traded within a narrow sideways range, with resistance identified at $1.1050 and support at $0.7095. This extended period of consolidation indicated a phase of quiet accumulation, where informed market participants were building positions while price volatility gradually decreased.
This consolidation phase established a robust base for the asset, but it also defined a clear trading range that the market later targeted for liquidity.
Manipulation Phase
In early November, ONDO experienced a decisive break below the critical support level of $0.7095. This breakdown triggered stop-loss orders and forced less committed investors out of their positions. The price then fell to a local low near $0.4550 before finding stability in the approximate region of $0.4760–$0.4800.
This area, highlighted in red on the chart, represents the manipulation zone. This is a common area where false breakdowns can occur before the true direction of the trend is established.
Future Outlook
Currently, ONDO remains within this manipulation zone, suggesting that some further sideways movement or minor downward price action is still possible. However, if buyers continue to defend this region and the price successfully reclaims the $0.7095 level, the next phase, known as expansion, could commence.
Key technical levels to monitor for potential price movements include:
- •The immediate resistance level, which is the 100-day moving average (MA) currently situated near $0.7556.
- •The major breakout zone, identified at $1.1050.
A clear and sustained break above both of these levels could pave the way for a projected target near $1.75, indicating substantial potential for upside from current trading prices.
Concluding Remarks
While the technical structure is gradually showing signs of becoming more constructive, ONDO remains in a vulnerable position as long as it trades below the $0.7095 level. For a confirmed and significant shift in trend, bulls need to regain control of this key level. Until then, a degree of caution is warranted, although the foundational technical elements for a potential recovery are clearly starting to emerge.