7% Plunge in a Single Day! Ondo Finance (ONDO)'s Surge Rally Halted

▲ Ondo (ONDO)/Source: X ©

Ondo Finance gave back most of the previous day's gains, falling by nearly 7% in a single day. The price, which had surged due to regulatory issues from China and anticipation of Real World Asset (RWA) tokenization, hit a key resistance level, leading to a rapid wave of short-term profit-taking.

According to CoinMarketCap, a cryptocurrency market data aggregator, on May 23 (local time), Ondo Finance (ONDO) traded at $0.387, down 6.89% over 24 hours. While the overall cryptocurrency market showed weakness, with Bitcoin (BTC) falling by 2.34% during the same period, Ondo Finance's decline was more significant.

The primary reason for this decline was analyzed as a failure to break through technical resistance. ONDO surged over 15% on May 22, briefly surpassing $0.46, but encountered strong selling pressure at the key resistance level of $0.4709. With no additional buying interest at higher price points after the surge, it led to a short-term correction.

Overall market risk aversion and profit-taking also exacerbated the decline. While the total cryptocurrency market capitalization decreased by 1.97%, no specific new negative news was identified for ONDO. The media interpreted this correction as investors locking in profits after the surge triggered by news related to Chinese regulations and RWA expectations.

The short-term key is whether the support zone of $0.38-$0.40 can be defended. This zone coincides with the 200-day Exponential Moving Average (EMA), and if this level holds, ONDO could retest $0.42. Conversely, if it falls below $0.38, the bullish structure could weaken, raising the possibility of a further decline to $0.36.

CoinMarketCap noted that ONDO's mid-term trend is still in bullish territory, having risen 47% in the last 30 days. However, the short-term momentum has cooled, and a daily close above $0.42 is needed to confirm the end of the correction. Ultimately, this decline is assessed as a healthy correction after a rapid surge rather than a fundamental collapse.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*