Why is ONDO’s price outlook bullish?

Ondo (ONDO) continues to trade higher at around $0.78 on Thursday, having rallied 14% so far this week following a 12% increase last week. This bullish momentum appears poised to continue as on-chain data shows a new all-time high in Total Value Locked (TVL), coupled with whale accumulation, rising trading volume, and decreasing supply on exchanges.

ONDO bulls remain strong as on-chain metrics indicate continued momentum

Crypto aggregator platform DefiLlama data shows a bullish outlook for Ondo. The data shows that Ondo’s TVL increased from $537.13 million at the end of August to $618.32 million on September 22, making a new all-time high (ATH).

This rise in TVL indicates growing activity and interest within the Ondo ecosystem. It suggests that more users deposit or utilize assets within ONDO-based protocols, adding credence to the bullish outlook.

ONDO TVL chart

Moreover, Santiment’s Supply Distribution metric shows that whales are accumulating ONDO tokens. This metric shows that wallet holding has increased from Monday to Thursday. During this period, holders holding 100,000 to 1 million, 1 million to 10 million, and 10 million to 100 million tokens have increased from 79.17 million to 80.24 million, 395.32 million to 403.05 million and 479.60 million to 908.05 million, respectively. This development shows that investors have confidence in ONDO tokens and are accumulating.

ONDO Supply Distribution metric chart

Additionally, Ondo’s daily trading volume and supply on exchanges align with the bullish outlook. Ondo’s daily trading volume has risen from 202.18 million to 496.96 million from September 15 to Thursday, the highest since August 5. This rise indicates a surge in traders’ interest and liquidity in the Ondo chain.

The exchange’s supply fell from 345 million to 330 million during the same period. This fall indicates increasing confidence among investors as holders remove ONDO tokens from exchanges and store them in cold wallets.

ONDO Supply on Exchanges and Volume chart 

Despite a new all-time high in TVL, whales accumulating, rising trading volume and decreasing supply in exchanges, Ondo’s daily active addresses have remained low. Declining addresses point to lower demand for the network. This suggests that investors should exercise caution when anticipating a sudden price increase.

ONDO Daily Active Addresses chart