ONDO has entered what many traders see as its most important price region in months. On February 2, analyst Crypto Patel highlighted that the token is trading inside a major weekly demand zone after an almost 88% correction from its all-time high near $2.14.
That peak marked a clear macro top, where bearish divergence formed before price rolled over sharply. Since then, the token has broken down key support levels and turned them into resistance, most notably the $0.73 to $0.80 range.
Although the price decreased significantly, there is still a buying interest in higher time frames between $0.32 and $0.20. This corresponds to a strong buying period in the past, where buyers acted quickly.
The price has recently fallen to this region, which is considered by many traders to be an accumulation point. If ONDO holds above $0.20 on a weekly close, it is possible to recover from the current situation.
ONDO Remains Trapped in a Descending Channel
According to TradingView data from February 2, there is still weakness on the daily chart. ONDO is still being held within a descending channel, which has been defining the price actions since September. The descending channel has been making lower highs and lower lows.
The latest action has propelled ONDO towards the $0.276 region, thus continuing the overall downtrend. The price has not been able to regain the center of the channel or make a sustained attempt upwards.
The latest candles indicate that, despite the lower levels, there is still little support from buyers. Each attempt to reverse is immediately countered by selling.
Also Read: OndoFinance TVL Surges $1.5 Billion, But $ONDO Token Stays Flat
Momentum Indicators Point to Ongoing Bearish Pressure
Momentum indicators also confirm the bearish outlook. The daily RSI is in the region of 27-28, which is strongly oversold. While oversold levels can cause a rebound, ONDO’s RSI has been below 50 for a considerable period. This is a strong indication that the current trend will continue.
Pullback and run-up indicators also confirm the bearish outlook. ONDO has already experienced a strong correction, but there is little strength in the upside momentum. A strong upside momentum usually reverses quickly, so a possible short-term bounce may remain corrective.
Also Read: ONDO Tests Critical Support After 4-Month Decline, Market Nears Decision
