The digital asset ONDO has entered a critical phase after months of steady decline. As per the market data, the asset is trading at around $0.25, which is significantly lower than the high prices the asset was trading at in the past, above $1.
The long-term decline has put the asset in a range where traders are anticipating accumulation, although the overall trend is still in a state of decline.
However, Crypto Patel pointed out in an X post that the price of ONDO may be a great long-term play if the support continues to be solid.
The above is coming at a time when the price of ONDO is near a level where many technical indicators that traders often monitor are present.
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ONDO Approaches Major Demand Zone
However, ONDO’s price relative to the dollar has maintained a long-term trend of going down. The asset is constantly making lower highs and lower lows. The bounce at the 0.382 Fibonacci level at $0.81 was a turning point.
However, the asset was unable to stay above this point, after which it fell below major support levels, going through the Fibonacci levels at $0.60 and $0.45.
Source: X
The price declined towards the 0.786 retracement level at $0.29 and then proceeded towards the potential buying zone between $0.17 and $0.21, which is considered the demand zone.
Crypto Patel has also highlighted that the Trump-owned WLFI acquired 342,000 ONDO at around $470,000 at the price of $1.374. Currently, the price of ONDO is around $0.25, which is 85% down from the entry price.
Indicators Show Weakness but Hint at Exhaustion
As indicated by technical indicators, the sellers are still in charge of the overall trend. According to Tradingview indicators, ONDO is currently trading below its main indicators: the 20-week, 50-week, and 100-week simple moving averages.
The indicators are currently trading above the asset with values at $0.39, $0.69, and $0.85, respectively. The RSI is at approximately 29. The asset is oversold, and this could be an indication that the market is about to reach a point where the selling pressure is going to ease.
Source: Tradingview
The MACD indicator is still bearish, but the decreasing height of the histogram bars indicates that the selling power might be decreasing. This is usually an early indication that the market might soon consolidate.
In the short term, the price is currently testing the support at $0.24 to $0.25. If it holds in that region, it might consolidate and even rally towards the region of $0.30 to $0.32.
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