The bullish reversal chances surround the ONDO price chart with the channel breakout on the horizon. Will a breakout rally create a new all-time high?
With Bitcoin BTC $83 402 24h volatility: 2.6% Market cap: $1.66 T Vol. 24h: $26.19 B crossing above the $100,000 mark, the total crypto market cap excluding Bitcoin peaked at $1.48 trillion. With the 7.32% surge in the altcoin market, crypto market sentiments have significantly improved.
Amid such recovery, Ondo Finance ONDO $0.82 24h volatility: 6.9% Market cap: $2.58 B Vol. 24h: $148.17 M struggles to make a bullish impact. However, the changing landscape could revive the bullish rally for a parabolic rise.
ONDO Price Eyes Channel Breakout
Over the past 24 hours, the Ondo price has increased by just 2.6% with a market cap of $1.66 billion. In the daily chart, the Ondo price action reveals a falling channel pattern, holding the price trend.
Currently, Ondo price action reveals a crucial horizontal support at the $1.19 level. This drives the short-term sideways trend within the channel pattern.
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ONDO Price Chart
With an intraday drop of 6.68%, the sellers have undermined the 8.06% surge last night. This limits the 24-hour growth and warns of a bearish continuation within the falling channel.
However, the dynamic average line of the 200-day EMA is likely to act as a bullish cushion. Furthermore, the daily RSI line reveals a minor bullish divergence, increasing the breakout chances.
Analyst Promotes Bullish Positions in Ondo Finance
As the Ondo token price action reveals a bullish setup, the recent tweet from Ali Martinez supports the bullish sentiment. In his recent X post, Ali Martinez highlights the negative funding rate in the Ondo derivatives market.
$ONDO currently has a funding rate of over -60%, which means exchanges are literally paying you to go long on it. That’s a rare setup and one worth taking note of. pic.twitter.com/XzMxhlxa54
— Ali (@ali_charts) January 16, 2025
The funding rate of -63.73% t reflects an extremely rare setup where exchanges are paying traders to hold bullish positions. While Ali Martinez judges this situation as a risk worth taking, traders avoiding the high leverage might be better off.
ONDO Price Target Levels
Based on the broader price action, the current falling channel pattern acts as a pullback of the November and December bullish rally. Hence, a potential breakout of the falling channel will prolong the bullish journey.
Using the trend-based Fibonacci levels, the channel breakout will likely re-challenge the 61.80% Fibonacci level near the $2.00 psychological mark. Beyond this, the price targets are at $2.32 and $2.60.
On the flip side, the 200 EMA near the $1.00 psychological mark and the $0.80 mark are crucial support levels.
Conclusion
The rare negative funding rate offers a bullish opportunity but comes with risks, especially for high-leverage traders. However, the falling channel pattern and RSI divergence support a potential breakout. In a nutshell, if ONDO bounces off from the $1.19 support and breaks the channel, targets at $2.32 and $2.60 remain within reach.
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