- ONDO token has declined from its all-time high, facing challenges in recovery.
- On-chain data shows large holders are liquidating assets, which is impacting the ONDO price.
- Despite partnerships, the ONDO price remains stagnant, with declining user activity.
World Liberty Finance (WLFI), a crypto project associated with the Trump family, has formed a strategic alliance with Ondo Finance, which is a large one for the asset, but ONDO price action remains muted.
As its blog official says, this collaboration aims to promote the adoption of tokenized RWAs and bridge traditional finance with the blockchain ecosystem.
Despite Ondo Finance achieving significant milestones, the ONDO price is still below a dynamic downward trendline and consolidating between 20-day and 50-day EMA bands. It is unable to surge from a fall from its ATH cliff.
Moreover, the ONDO price remains momentumless due to the ongoing current hawkish market conditions. This is majorly hindering this WLFI partnership’s ability to spark a turnaround in the ONDO price.
Amid these market fluctuations, technical indicators confirm to its consolidation phase, with investors closely monitoring levels.
Even with the low momentum, some optimistic speculation still persists that the ONDO price could potentially soar to $2 or even $5. Keep reading.
What On-chain Data Highlights for Ondo Price Amid New Partnerships?
While ONDO crypto is making strides through its fundamental strategies, its price has yet to reflect this progress.
The project is known for its developed alliances with major financial institutions, including BlackRock, Franklin Templeton, WisdomTree, and Wellington, all of which are part of the Nexus partnership. According to its website, ONDO crypto boasts a total of 96 partners within its ecosystem.
Moreover, this collaborative effort aims to enhance the Ondo crypto’s ability to release funds instantly, thereby increasing the appeal of the ONDO asset.
However, the price of ONDO has not shown the same optimism on the charts. Several underlying factors are hindering its price recovery.
One of the factors highlighted from on-chain data from Santiment that indicates a significant decrease in the value of ONDO tokens held by large holders.
This fall suggests that some investors are fleeing the asset due to unsatisfactory returns despite positive news surrounding ONDO.
Similarly, the Santiment chart confirms this trend, showing that the balance of addresses holding over 1 billion tokens dropped by over $100 Million from February 6th onwards. This decline implies that key stakeholders are liquidating their assets.
But, if these sell-offs persist, they could exert further downward pressure on the ONDO price, which could even overshadow any potential buying interest.
Even the recent alliance with WLFI has not provided much support to its price. According to its official blog, this partnership is expected to drive the adoption of Real World Assets (RWA), yet the price has not reacted significantly to this strategic move.
While it appears to be a positive development, it has not served as a major catalyst for the ONDO price struggle to rebound.
Additionally, a decline in user activity on the network is further stifling momentum. Data shows that the number of zero-balance, new, and active addresses on ONDO crypto has all decreased over the past week, which is contributing to the overall stagnation in the ONDO price.
Can Market Confidence Surge by Ondo Chain?
Ondo Chain is marking a significant milestone in the history of blockchain technology. This institutional-grade blockchain system for Real World Assets aims to enhance the efficiency of financial markets with its initial deployment.
Currently, numerous institutional investors are closely monitoring Ondo crypto’s expanding network infrastructure.
The partnership with established financial institutions provides Ondo Chain with long-term validation.This suggests that ONDO crypto could see rising trade volumes and improved price trends as adoption could rise.
However, the marketplace requires more time to assess the practical impact of the chain on financial markets.
While market participants are optimistic, there remains a degree of skepticism regarding the launch of this new project.
Additionally, for a price rally to sustain, it will need to be supported by increased market adoption and positive perceptions among all investors.
Ondo Price Future Outlook: What are Analysts Suggesting?
As of the latest update, ONDO crypto is priced at $1.348, reflecting a decline of 3.4% in just one day.
However, over the past month, the token has managed to secure a 22% gain, despite a weekly dip of 12%.
This price action indicates limited volatility, with ONDO price currently in a consolidation phase. Nevertheless, certain key developments could potentially trigger a breakout.
The combination of institutional partnerships and increasing adoption supports a positive long-term outlook for ONDO price.
However, current indicators are not signaling any decisive movement; both the MACD and AO histogram show extremely small values, suggesting a lack of momentum.
Amid this sideways movement, the RSI remains below the 50 mark, while a negative Chaikin Money Flow indicates that selling pressure is dominating the market.
In terms of predictions, analyst Trader Tareeq has presented a one-day chart for ONDO, suggesting a potential uptick to $2.5.
Another analyst, JChains, offers a more bullish perspective, forecasting that ONDO price could reach $5.
Meanwhile, financial specialist Kyren has shared an ambitious forecast, predicting that ONDO price is poised for a bullish resurgence, targeting a price of $10.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
