Examining ONDO’s price targets after network announces use of tokenized stocks as collateral

$ONDO made headlines recently after it extended its bullish run with significant gains of 10% over a 24-hour period.

The altcoin’s price action picked up momentum after the network announced that perpetual traders can now use tokenized stocks as collateral. The move is aimed at broadening the range of assets available for leveraged trading.

The impact of the announcement was instant. $ONDO’s price extended its gains on the daily chart, adding to an uptrend that had already been building over the past few weeks.

The breakout came before the news

Before the announcement, $ONDO had just managed to break free from a bullish pennant that acted as a cap on prices during the consolidation phase. Its latest breakout moved momentum back in the bulls’ favor and reaffirmed the prevailing uptrend that has been intact since the token found support at the $0.30-price level.

The aggressive breakout resulted in a market gap between $0.32 and $0.36, which got filled and the bullish run continued further.

In simple terms, the recent announcement strengthened the altcoin’s bullish bias. Especially since $ONDO’s price action respected the bullish fair value gap.

At the time of writing, $ONDO was still trading above the 20-day Simple Moving Average. The Bollinger Bands’ divergence had widened too, hinting at greater volatility in the market.

Source: TradingView

Whales continue to add to their positions

According to AMBCrypto’s recent analysis of Spot Average Order Size data, $ONDO’s large holders have been showing little sign of stepping aside.

In fact, on-chain data indicated a surge in whale orders’ accumulation around $ONDO’s press time price even after the breakout. This implied that long game players were still positive on the long-term bullish market structure.

In previous scenarios, persistent accumulation during a trending market has given the trend more room to extend itself.

For $ONDO, the same scenario could come into play and strengthen the prevailing market bias.

Source: CryptoQuant

Is $0.50 the next hurdle?

The altcoin’s long-term technical structure has remained constructive so far. By continuing to trade above key support levels established after the pennant breakout, $ONDO has preserved the higher highs and higher lows.

The next major area which traders and investors are watching sits near $0.50. This is a psychological level that could attract both profit-taking and fresh buying interest.

The presence of several liquidity clusters worth more than $5 million sitting above $0.45 seemed to affirm the market bias. $ONDO’s price action could rally further to hunt the unmitigated liquidity.

Source: Coinglass

Final Summary

• $ONDO’s price gained momentum after tokenized stocks became available as collateral for perpetual trading.
• Whale accumulation has continued to follow the breakout from a bullish pennant, leaving the $0.50-psychological level as the next major target for buyers.

Source