What you need to know
What caused ONDO to be concerned?
Fears of exchange-driven selling pressure arose from the 26.28 Million ONDO deposit, which included $6.19million in Arthur Hayes’ wallet.
What does ONDO’s future look like based on metrics?
The MVRV-Z-score of -0.77 for ONDO shows that holders are underwater. A NVT Ratio over 25 indicates fragile demand, and valuation risks.
Ondo Finance [ONDO] A Gnosis Secure Proxy wallet that deposited 26,28 million tokens worth $24.7 millions into exchanges in just 10 hours drew increased scrutiny.
Arthur Hayes received 6.57 million Ondo, or $6.19million, directly in his Bybit wallet. On-chain data showed In the last 30 days, his wallet had accumulated 36.88 Million ONDO worth $37.56 millions.
This increases the demand for goods, and can lead to a possible sell-off.
History has shown that large inflows to centralized exchanges are often accompanied by a period of volatility. ONDO’s setup is similar.
Will resistance or ONDO dominate the fight for support?
ONDO’s prices showed a constant struggle between support and opposition. The token tried several breakouts after forming an earlier cup-and handle pattern.
The price was unable to rise above the resistance of the channel, which is located near $1.15. The latest action tested support at $0.82–$0.85 before rebounding toward $0.93.
These swings are indicative of indecision on the part of both buyers and sellers.
Even with rebounds, sustained flows into the exchanges can cap upward momentum and put pressure on support.
TradingView
MVRV indicates holders are below the surface
OnDO’s MVRV z-score was 0.77 according to Santiment. It was clear that most investors were in debt, which limited their ability to invest.
In the past, these phases have often led to a reduction in buying pressure as fewer traders see the market attractive.
A heavy influx of deposits into exchanges increases the probability that additional selling pressure will occur.
Source: Santiment
A rising ratio of NVT triggers warning signals
ONDO’s NVT Ratio rose above 25, indicating high valuation in relation to transaction activity. In order to provide some context, the NVT Ratio of ONDO climbed above 25, signaling high valuation relative to transaction activity.It is not uncommon for pikes to coincide with conditions that are too hot.
It is also possible that there will be short-term fluctuations.
The sentiment remained skewed despite some efforts to recover the price.
The gap between the activity level and network valuation suggests that organic demand has not yet reached its full value. This is why sentiment remains fragile.
Source: Santiment
ONDO is under pressure from whale deposits, which are a major factor in the exchange market.
Although temporary rebounds appeared, repeated rejections of resistance and weak transaction dynamics fuelled uncertainty.
Holding the support at $0.85 may help ONDO recover, but a failure to do so could lead to further downside.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
