Will ONDO Overcome Its Current Struggles?

Ondo (ONDO) has managed to maintain its crucial support level at $0.87 since mid-July. This persistence comes amid challenging market conditions for altcoins, largely influenced by the volatile movements of Bitcoin (BTC) and Ethereum (ETH), which have not presented a clear trend recently. The ONDO token has experienced a bearish daily market structure, creating lower highs as observed over the past three weeks.

What Does the Data Say?

Santiment data suggests that ONDO’s network growth and daily active addresses have remained relatively stable since late July. This steadiness indicates no significant network expansion or contraction—a positive sign amidst price fluctuations. The “age consumed” metric, which tracks the movement of long-dormant tokens, also appears stable, suggesting no large-scale token viabilities are underway.

Is Buying Pressure Building?

Buying pressure has been noticed from wallets holding up to 1 million ONDO. However, larger investors, with holdings between 1 million to 100 million, have shown a slight reduction in numbers over the past ten days. Together with the stable age consumed metric, these factors could indicate some accumulation activity for ONDO.

The Spent Output Profit Ratio (SOPR) is currently at 0.98, indicating that current holders are generally selling at a loss, as SOPR figures below 1 imply. Apart from a brief surge to 1.4 in August, SOPR has hovered around 0.9-1 since late July. Such low SOPR values could imply ONDO is undervalued, offering a buying opportunity despite the associated risks highlighted by the Chaikin Money Flow (CMF) on the daily chart.

Price Analysis Insights

Technical indicators suggest short-term bearish trends and seller-control risks, which could undermine the $0.87 support level. However, on-chain metrics provide a more positive outlook. Steady network growth and active addresses highlight robust fundamentals and persistent user interest, while the stable age consumed metric indicates potential accumulation by major investors and smaller players alike.

Key Takeaways:

• Ondo has maintained its $0.87 support level since mid-July despite market volatility.
• Stable network growth and daily active addresses suggest underlying strength.
• Current SOPR values below 1 indicate potential undervaluation of the token.
• Investors should balance technical and on-chain analysis before deciding.

Given the blend of cautious technical indicators and hopeful on-chain data, ONDO might represent a viable long-term investment. The fact that SOPR values suggest the token is priced below its average cost is a noteworthy point for potential investors. However, a comprehensive analysis and strategic approach are recommended given the mixed signals present.