Ondo Finance up 14% as entity buys $61M ONDO – Is more upside coming?

Ondo Finance [$ONDO] is the best-performing crypto in the top 100 in the past 24 hours after pulling gains of more than 14%.

The altcoin has outperformed Bitcoin [BTC] alongside the broader crypto market. This surge has been due to whale accumulation, perp volume, and the tokenization narrative that is pulling capital into $ONDO crypto.

Perps’ volume quadruples as entities accumulate $ONDO

The trading volume of Ondo Finance surged by more than 118%, surpassing $155 million. Worth noting, perps volume accounted for all this volume while DEX volume stayed flat.

As per DefiLlama, daily perps volume increased by 4x from the previous day’s reading of $38.48 million to $155 million. However, it was still below the $271 million perp volume achieved on the 17th of July.

Source: DefiLlama

On top of high speculative trading on perps DEXs, entities were buying spot $ONDO from exchanges.

For instance, a total of 178 million $ONDO, worth $61 million, was transferred to different addresses from the Coinbase Prime Custody wallet. The transactions were done in six batches, each of around 29.644 million $ONDO worth $10.23 million.

Source: Arkham

These large transfers are a part of frequent transfers that have increased of late for the altcoin. They indicate buying activity from large players that include whales and institutions.

Can $ONDO now confirm the higher high that is forming?

After breaking out of a daily chart’s triangle pattern on the 15th of July, $ONDO appears to be shifting the market structure. The consolidation pattern has played out over the last two and a half months.

The breakout was initiated following a triple touch at the $0.30 support level.

Currently, the altcoin is forming a potential higher low (HL) at $0.34 but will be confirmed only if the altcoin’s daily candle closes above $0.40.

The MACD is also green, indicating a shift to bulls’ control. Moreover, the RSI Divergence indicator is at 64.71, reinforcing the buying activity. The two readings suggest further uptrend continuation, but hurdles exist.

Source: $ONDO/USDT on TradingView

These price hurdles are at $0.40 and $0.44, which were inside the triangle. Further resistance was at $0.48, which was the top of the triangle pattern.

The massive backing from the entities that are buying shows that bulls are likely to break these levels. Otherwise, if this prediction is not met, $ONDO may fall to $0.34 or $0.30, where the upside move began.

Final Summary

• Ondo Finance surged by more than 14% in 24 hours amid a perps volume increase and big players buying.
• $ONDO broke out of a triangle pattern, and price action was forming a HL at $0.34 but was yet to be confirmed.

Source