Ondo Finance’s ONDO price is facing renewed selling pressure after another failed attempt to break above the upper boundary of its triangle formation. The rejection has pushed the token lower, raising concerns about whether the current consolidation could develop into a deeper correction.
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Crypto analyst LAR described the latest move as part of continued “manipulation,” arguing that the pullback could present another opportunity to accumulate ONDO. According to the analyst, weak hands may be shaken out before the token resumes its broader upward move.
LAR maintains a bullish outlook and expects ONDO to eventually move toward $0.90. However, the analyst’s target remains a projection rather than a confirmed price path, with ONDO first needing to overcome several technical barriers.
Technical Indicators Signal Short-Term Weakness
TradingView data shows ONDO trading around $0.34807, down 3.24%. The decline has pushed the token below its 20-day simple moving average at $0.36386, indicating that short-term momentum has weakened.
The price is now approaching the lower Bollinger Band near $0.33536. This area could become an important support zone if sellers remain active. A sustained decline below it could expose ONDO to additional downside and potentially send the token back toward the lower $0.30000 range.
Source: TradingView
ONDO previously faced rejection around $0.39000 during early September. The inability to sustain moves above that region has kept sellers in control and weakened the immediate bullish setup. For the outlook to improve, ONDO would need to reclaim the $0.36386 20-day SMA and then challenge the $0.39000 area again.
Also Read: ONDO Price Eyes $0.50 as Volume Surges and RWA Adoption Accelerates
MACD Confirms Bearish Momentum
Momentum indicators also point toward caution. The MACD line stands at 0.00193, below the Signal line at 0.00209, producing a negative histogram reading of -0.00017.
The expanding red histogram bars suggest that buying momentum has weakened across recent sessions. While this does not necessarily invalidate the longer-term bullish thesis, it indicates that ONDO may need additional consolidation before buyers regain control.
Therefore, a rally above the 20-day SMA will be a critical first sign of weakening of the existing correction phase. However, until then, traders may watch the area of the $0.33536 Bollinger Band for any signs of stability.
Derivatives Activity Shows Cautious Positioning
CoinGlass data further shows the more careful derivatives market environment surrounding ONDO. The 24-hour derivatives volume has decreased by 16.67% to $213.61 million, and open interest is down by 1.51% to $222.77 million.
Source: Coinglass
The greater decline in the volume points to a lower level of short-term trading participation, while the lesser decrease in the open interest reflects the fact that a substantial number of already established positions still exist in the market.
This could mean that the traders are awaiting a breakthrough move before they increase their position. A breakout above the resistance level with an increase in volume would then be more confirming than the price move with a decrease in participation.
Tokenization Growth Supports Longer-Term Outlook
However, in spite of such short-term weakness, the overall trend is much more positive due to certain events that have taken place in Ondo Finance’s ecosystem. Ondo Finance noted the growing popularity of tokenized assets as their users grew by 90% within one month.
The number of holders rose by 93% to nearly 450,000. The increase indicates an increasing interest in Ondo’s tokenized financial assets and demonstrates growing interest in the industry as a whole.
What Happens Next?
With ONDO, increased adoption is not enough to ensure a quick rise in token price but can help build a better story for the project in the long run.
Currently, the price of ONDO is still being squeezed by bearish pressure in the short term and bullish pressure in the long term. If ONDO can defend $0.33536, it can help contain the correction. If ONDO manages to take out $0.36386, it will improve its technical setup. The break of $0.39000 can pave the way for further gains.
Also Read: ONDO Price Holds Above Key EMAs as Tokenization Gains Traction
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
