Ondo Finance (ONDO) has encountered significant volatility, with its price dropping over 30% from its all-time high of $2.14. Despite this downturn, analysts remain optimistic about its recovery potential, given its strong performance earlier in the market cycle. As a top-performing altcoin, ONDO continues to attract investor interest, fueling speculation about its next price movement.
However, caution is advised. Renowned analyst Ali Martinez warns of a potential 30% correction if ONDO fails to hold the $1.46 support level. His technical analysis highlights a developing head-and-shoulders pattern, a bearish reversal signal that could trigger further declines.
Key Support Levels and Bullish Recovery Scenarios
ONDO is currently testing critical demand zones near $1.46–$1.50, a pivotal support area. Holding above this range could reignite bullish momentum, while a breakdown may accelerate selling pressure.
👉 Why $1.46 Support is Crucial for ONDO’s Recovery
Analyst’s Bearish Outlook: Head-and-Shoulders Pattern
- Pattern Implications: A confirmed head-and-shoulders formation often precedes a trend reversal, projecting a 30% drop toward $1.05.
- Invalidation Condition: ONDO must reclaim $1.86 as support to negate the bearish scenario.
Technical Analysis: Near-Term Price Action
| Level | Significance | Outcome |
|----------------|--------------------------------------------|------------------------------------------|
| $1.46 | Strong support zone | Hold could stabilize price |
| $1.70 | Resistance for bullish confirmation | Breakout may signal recovery |
| **$1.05** | Target if $1.46 fails | 30% correction risk |
Current trading at $1.49 shows resilience, but broader market sentiment remains a wildcard. Traders await clarity on whether ONDO can sustain its support or succumb to deeper losses.
FAQs
Q: What is the head-and-shoulders pattern, and why does it matter for ONDO?
A: It’s a bearish reversal pattern suggesting a potential 30% drop if ONDO breaks below $1.46. Confirmation would signal weakened demand.
Q: How can ONDO avoid a further decline?
A: Reclaiming $1.86 as support would invalidate the bearish setup, indicating strength and renewed buying interest.
Q: What are the key levels to watch?
A: Monitor $1.46 (support), $1.70 (resistance), and $1.86 (bullish confirmation).
👉 Learn How to Navigate Altcoin Volatility
For now, ONDO’s trajectory hinges on its ability to defend critical support. Traders should stay alert to technical signals and broader market trends for decisive directional cues.