Ondo price eyes 30% rally as ONDO bulls plan a breakout
- Ondo price has been coiling up below the $0.282 resistance level for nearly a month.
- The sideways movement has formed an Inverse Head-and-Shoulders pattern, hinting at a 30% rally for ONDO holders.
- Invalidation of the bullish thesis will occur on the breakdown of the $0.269 support level.
Ondo (ONDO) price has been in a tight consolidative range for nearly a month and is edging closer to breaking out. A successful flip of the immediate hurdle could lead to double-digit gains for ONDO holders.
Also read: Top three altcoins trending in crypto social media: Ethereum, Dogecoin, Ondo
Ondo price eyes a breakout rally
Ondo price action over the past month has produced a bullish Inverse Head-and-Shoulders setup. This technical formation contains three distinctive troughs. The central one, known as the “head”, is deeper than the other two, which are the “shoulders”.
The peaks of the troughs are connected via a horizontal resistance level known as the neckline. Final confirmation of an up move is given if price breaks decisively above the neckline, by producing a daily close above it.
This setup forecasts a move equal to the height of the pattern extrapolated higher. In this case it suggests a 31% upswing for ONDO to $0.371
The four-hour Relative Strength Index shows a bullish outlook that is echoed by the Awesome Oscillator, which is a bullish confluence of two indicators supporting the optimistic outlook detailed above.
Additionally, ONDO is a project that focuses on Real Word Assets (RWAs) on blockchain, which is extremely popular now that crypto is getting mainstream attention. This fundamental aspect has already caused Ondo price to rally 45% in the last 18 days and could also catalyze another breakout.
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ONDO/USDT 4-hour chart
On the other hand, if Ondo price produces a daily candlestick close below $0.269, it would invalidate the bullish thesis by producing a lower low. This move could attract panic sellers that could potentially trigger a 9% correction to $0.245.
Also read: Chainlink’s large wallet holders pull $216 million worth of LINK out of exchanges, fuel gains
(This story was corrected on February 19 at 15:13 GMT to say that invalidation of the bullish thesis will occur on the breakdown of the $0.269 support level, not $2.69)
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
