With Bitcoin breaking above $90,000 again, many altcoins are showing signs of recovery. Some crucial breakouts could trigger significant rallies in select cryptocurrencies. One of these is ONDO, which saw an increase of around 6% on Wednesday.
The ONDO/USDT price chart on a 12-hour timeframe reveals important patterns which Ali charts analyzed. For months, ONDO price has been trading within a descending channel, characterized by consistently lower highs and lower lows. This formation typically indicates a continuation of the downward trend until a breakout occurs. The lower boundary has provided support during selloffs, while the upper boundary has repeatedly capped upside movements.
Currently, ONDO price is testing a horizontal resistance level that aligns with previous support-turned-resistance. This crucial zone coincides with the upper boundary of the descending channel, making it a particularly important level to watch.
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ONDO Token Potential Spike to $5
If ONDO successfully breaks above this resistance, it could trigger a massive bullish wave. Such a breakout would invalidate the descending channel pattern and potentially signal a shift in market sentiment from bearish to bullish. The immediate target after a confirmed breakout would be $2, with $5 representing an extended target for longer-term holders. If ONDO fails to break through the resistance, we could see rejection and another retest of the lower trendline of the channel.
The chart suggests a bullish outlook only if the breakout proves successful. Should ONDO break above resistance and subsequently consolidate above it, further upside momentum would be expected. The $5 target mentioned is ambitious but achievable with sustained momentum and positive market conditions.
In summary, a breakout above resistance could lead to a sharp rally toward $2 and beyond, while rejection would indicate continued consolidation within the channel. Traders should watch for volume spikes and a daily close above resistance for confirmation of the breakout.
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ONDO Momentum Building with Institutional Interest
Sarosh, a market analyst tracking ONDO closely, notes that the token is trading at $1.12, up 18% in a single session. The price recently bounced cleanly through the 200-day simple moving average—a bullish signal if it can maintain above this level.
With over 58 million in volume and more than an hour left in the trading session, ONDO is showing signs of serious accumulation. This significantly exceeds the estimated average daily volume (marked by a yellow dashed line in Sarosh’s analysis), suggesting that larger institutional players may be stepping in rather than just retail FOMO driving the price.
Looking ahead, $1.22 represents the first resistance level to overcome. Breaking that would put $1.34 in focus as the next target. Consecutive green days would establish constructive price action, potentially setting up a larger move.
Technical indicators support this bullish case: the Relative Strength Index (RSI) at 48.70 is pushing upward, confirming strength with room to run higher. The Slow Stochastic at 38.46 is also rising, signaling a positive momentum shift.
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Currently, the outlook appears “solid,” but continuation is necessary to build a sustainable rally. If volume remains strong into the close, ONDO could be setting up for a bigger leg up—though there’s considerable resistance to overcome. As observed last Sunday, when significant news or events occur, price often disregards technical resistance levels entirely, just as it ignored support levels during Monday’s decline.
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