Key Insights:
- ONDO crypto forms a falling wedge with 130% breakout potential ahead.
- TVL surpasses $1.39B as protocol revenue tops $51 million.
- Short-term price consolidates while volume hints at accumulation phase.
ONDO crypto is just above $0.75 as it moves in a falling wedge pattern that has a strong resemblance to the preceding breakout structure at the end of 2023.
The technical framework, combined with sound on-chain fundamentals, implies that we may see a bullish inversion in case the wedge breaks out in the same direction as it did in the past.
As the latest chart analysis based on 2 trades shows, ONDO crypto is currently testing upper resistance of a well-defined falling wedge pattern. This is a bullish continuation pattern that is considered to be the end of a correction.
The breakout may start a chain movement to up to $1.90-2.00 which is a calculated 131.66% increase in the current price.
This is an extension of the measured move method with the height of the wedge providing an indicator of the prospective range of breakout.
This is similar to the price movement that occurred in September, October, November, and December of the year 2023.
An almost similar wedge had formed prior to the aggressive rally that saw the value of ONDO increase more than twice.
Should history repeat again and the breakout happen together with confirmatory volumes, ONDO crypto might be in another growth phase.
Total Value Locked Surpasses $1.39B Amid Rising Protocol Revenue
DeFiLlama data shows that Ondo Finance already has a Total Value Locked (TVL) figure of $1.395 billion. This is an impressive increase since the beginning of 2024, when its TVL was less than $300 million.
The figures also accompany the increase in TVL: $56.4 million annualized fees and $51.08 million annualized revenue. Both of these signify a high demand of the Ondo tokenized real-world assets.
Notably, this trend in TVL increase and protocol revenue has not been facilitated by incentives allocations, which are unusual in DeFi.
This is an indication of real demand and utilization of users and not graphically overstated figures via token incentives.
Short-Term Chart Signals Caution on Ondo Crypto Despite Macro Bullish Setup
In the 4-hour Binance chart of ONDO/USDT, the cryptocurrency is consolidating in a rectangular formation of $0.74 to the higher point of $0.80.
The last few days have seen the price being restrained between these horizontal boundaries, which is an indication of uncertainty on the side of the traders.
The excerpts of the Momentum Trading are neutral for the Money Flow Index (MFI) is 48.98 since the amount of pressure to buy or those to sell is balanced.
The Awesome Oscillator (AO) has crossed above zero by a slight margin (0.0101), and it does not show any significant momentum, which means that the breakout is not confirmed yet.
Another indication is the reluctant behavior of traders who may be waiting to have additional macros confirmation or inflows of volumes into the long position.
The past day’s trading volume was up by 9.09% to reach $99.2 million as per CoinMarketCap as of press time. This price decreased by 1.99% to reach $0.756.
Such a trend of increasing volume and lowered price may be an indication of stealth accumulation. This kind of a period is likely to be followed by even bigger upward trends should the supply start running shallow in the consolidation zone.
ONDO crypto is at the crossroads. The creation of a nice falling wedge suggests a potential upside of 130%, which is strongly reminiscent of that scenario that played out in late 2023.
Even in the short term, the price is range-bound, though fundamentals are good, with TVL of more than $1.39 billion and annual revenue of $51 million.