Ondo Finance’s ONDO token price action has been interesting lately as the token faces downward pressure. In a tweet, analyst Ali highlighted a key pattern on the ONDO 4-hour price chart, suggesting a possible bearish trend reversal.
This pattern indicates that the token may face a sharp decline unless specific support levels are reclaimed.
What you'll learn 👉
ONDO Pattern Signals Potential Correction
According to Ali’s analysis, the ONDO price chart displays a classic Head-and-Shoulders formation. This technical pattern consists of three key elements: the left shoulder, the head, and the right shoulder.
The left shoulder represents an initial moderate price peak, followed by the head, which is the highest point on the chart. The right shoulder shows a smaller peak, signaling weaker upward momentum.
The pattern’s defining line is the neckline, a critical horizontal support level at $1.48. The token’s value could drop by 30% if there is a breakdown below this level, which would support the negative stance.
Bearish Target and Support Levels
The potential price correction for ONDO is derived from the height of the head to the neckline, projected downward.
Based on this measurement, ONDO could drop to $1.05 if the bearish scenario materializes. This level represents a 30% decrease from the neckline’s value.
For the token to negate this bearish forecast, it must reclaim $1.86 as a support level. This resistance-turned-support could signify renewed bullish momentum, invalidating the current bearish setup.
Read also: Market Analyst Predicts That Kaspa (KAS) Price Will Hit $1 Sooner Than You Think—Here’s Why
ONDO’s Price Action and Market Trends
Per data from CoinGecko at press time, ONDO trades at $1.48, with a daily trading volume of $227,195,351. Over the past 24 hours, the token has declined by 10.78%, contributing to a 22.33% drop in the past week.
The lower highs and the price hovering near the neckline emphasize waning bullish sentiment. Immediate resistance lies at $1.86, while a decisive breakdown of the $1.48 neckline could exacerbate selling pressure, aligning with the bearish target.
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