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ONDO price has dropped 12% this week, breaking its uptrend structure with a lower high and then forming a deeper lower low. The critical support level at $0.80 now faces significant pressure. Can it prevent further declines?

Technical Breakdown of ONDO Price

Recently, Ondo Finance saw its price break below the lower trendline of an ascending broadening wedge pattern, leading to a lower low at $0.78. This pullback also cut through the key horizontal support zone at $0.90, signaling a bearish shift in momentum.

Buyers entered at the $0.78 swing low, driving a slight recovery that has pushed the price back to $0.85 at press time. However, ONDO remains below the 20-day EMA and has yet to reclaim the crucial $0.90 level, which is necessary for a potential shift in market sentiment.

Key Support and Indicators

The $0.80 support level appears to be a strong zone, as it previously held during a pullback in mid-April when the uptrend initially began. Despite this, momentum indicators suggest weakness:

  • RSI (Relative Strength Index): Currently at 40, below the neutral 50 level and under its moving average. This indicates a lack of bullish strength.
  • MACD (Moving Average Convergence Divergence): Shrinking red histogram bars suggest that bearish momentum may be fading, but a clear bullish crossover has yet to occur.

What’s Next for ONDO Price?

For ONDO to regain bullish momentum, it must first reclaim the $0.90 level, which aligns with the 20-day EMA. A decisive move above this level, supported by strong volume, could pave the way for a retest of the $1.00 mark—the recent lower high.

To fully restore the previous bullish structure, ONDO would need to break above the most recent peak at $1.10. On the downside, a breakdown below the $0.80 support level could lead to a decline toward the next major support zone around $0.70.

Fundamental Developments

On the fundamental side, Ondo Finance recently engaged in discussions with the U.S. Securities and Exchange Commission (SEC) to explore how existing financial regulations might apply to tokenized securities. During the meeting, which occurred in late April, the firm’s leadership team collaborated with legal representatives from Davis Polk & Wardwell to present innovative solutions, such as sandbox initiatives or regulatory exemptions aimed at fostering innovation while ensuring investor protection.

These conversations highlight the growing interest in tokenized finance, which could play a pivotal role in shaping the future of digital assets and their regulatory frameworks.

Key Takeaways for Investors

Investors should monitor the following:

  • The price action around $0.90 to gauge potential bullish recovery.
  • Key support at $0.80 and its ability to hold amid selling pressure.
  • Updates on Ondo Finance’s regulatory discussions, as these could impact long-term adoption and confidence in tokenized securities.

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