Ondo Finance price drops amid rising whale activity: what’s next?

The Ondo Finance token pulled back for two consecutive days as the recent crypto bull run took a breather and whales began selling.

Ondo (ONDO) price fell 13.5% from this week’s high to $0.97, indicating that it has entered a technical correction.

The main catalyst for the sell-off has been continued weakness in the crypto market, with Bitcoin (BTC) falling from $100,000 to $92,000.

There are also signs that whales are selling money. Data from Etherscan shows that a whale moved 1.58 million tokens to Gate.io. Typically, crypto holders move assets from wallets to exchanges in preparation for selling.

Another owner also moved ONDO tokens worth $658,265 to the same exchange. In total, the whales moved almost $7 million worth of coins onto exchanges and likely made a profit.

Meanwhile, Ondo’s network has seen slow growth over the past few days as the total value locked remains at $643 million. Most of these assets are in the US Dollar Yield, which holds $452 million and offers a 4.90% yield. The remaining approximately $198 million is in US Treasury bonds yielding 4.59%.

In a recent statement, developers highlighted that Ondo’s tokenized treasury assets offer higher returns than other popular assets such as Franklin Templeton’s FOBXX and Blackrock’s BUIDL.

Ondo’s tokenized US Treasury bonds currently offer the highest yield of all tokenized US Treasury products. $USDY 4.9% and $OUSG It is at 4.64%.

Data source: @RWA_xyz

⚠️ NOTE: Neither USDY nor OUSG is registered under the U.S. Securities Act of 1933, as amended (the “Act”)… pic.twitter.com/GyjgOicaxX

— Ondo Finance (@OndoFinance) November 21, 2024

Ondo Finance is part of the tokenization industry, which analysts predict will experience significant growth in the coming years. A recent note from BCG predicts that more than $16 trillion in assets will be tokenized by 2030.

Ondo price technical analysis Ondo chart | Source: crypto.news

The daily chart shows that the price of the Ondo token rose as high as $1.1200 during the recent bull run. It has since pulled back and moved towards the bottom of the ascending channel pattern. The cryptocurrency remains above the 60-day and 25-day moving averages but has fallen slightly below the 38.2% Fibonacci Retracement level.

ONDO is also staying above the key support level of $0.8740, the September 27 peak. Therefore, the coin is likely to retest the $0.8740 support level before resuming the uptrend. A move above this month’s high of $1.1200 could potentially point to a year-to-date high of $1.50, about 53% above the current level.