Ondo Finance (ONDO) price appears to be experiencing renewed strength following a breakout from a bullish inverse head-and-shoulders formation, pointing to an increased level of buyer interest in the crypto asset. Positive technical factors remain supportive of the uptrend as the crypto asset makes a move towards an important resistance area.
At the time of writing, ONDO is trading at $0.4584, posting a 15.12% increase over the last 24 hours. The token also recorded a daily trading volume of $757.78 million, while its market capitalization climbed to $2.25 billion, according to CoinMarketCap.
Source: CoinMarketCap
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ONDO Price Eyes Bullish Rally
The latest surge in ONDO price has been supported by the continuous presence of strong signals on technicals and charting patterns. On May 22, this was pointed out by crypto analyst Alpha Crypto Signal through his analysis, where he noted that the inverse head-and-shoulders pattern for ONDO was already formed.
Source: Alpha Crypto Signal,s X Post
Based on the technical assessment, the ONDO price has started testing the key horizontal resistance zone after breaking out from the neckline support zone. The formation of higher lows since the breakout indicates that the buyers are supporting the trend even during minor retracements.
As mentioned by Alpha Crypto Signal, any reclaim of the present resistance level can pave the way for an upward rally. As long as the ONDO price maintains itself above the neckline support level, the overall structure of the trend should hold its ground.
ONDO Price Momentum Remains Strong
There are other technical indicators that confirm the continuing increase in price for ONDO. RSI stands at 70.31, exceeding the neutral zone and indicating very high levels of buying activity. The current value of the RSI signal line is 64.67.
An RSI value around 70 generally indicates high momentum, but it can also imply that short-term volatility or pullbacks are likely to occur after a sharp rally.
Source: TradingView
Meanwhile, the MACD indicator has turned bullish once more after a brief phase of correction. At the moment, the MACD line is trading at 0.03074, while the signal line is still below, trading at 0.02792. Moreover, the histogram has gone into the green region at 0.00281.
As both technical indicators and price movement support this action, the ONDO price is beginning to attract interest since the asset intends to break above resistance to resume its positive trend.
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