The ONDO token maintains its key support since mid-July despite volatility in the cryptocurrency market.
State of the ONDO Token Market
Since mid-July, the ONDO token has held its support level at $0.87. Other altcoins have struggled to gain momentum in recent months, possibly due to the volatility surrounding cryptocurrencies like Bitcoin and Ethereum, which have shown no clear trend. The ONDO market structure has been bearish, as the token has created lower highs over the past three weeks. Moreover, the Chaikin Money Flow (CMF) indicator has remained well below -0.05, indicating significant capital outflows and seller dominance. If selling pressure persists, ONDO may fall below its $0.87 support zone.
Is ONDO Currently Undervalued?
Data from Santiment indicates that network growth and daily active addresses have remained relatively unchanged since late July. This stable trend might signify positive development amid price volatility. Interestingly, the 'age consumed' metric has also been relatively calm in recent weeks. This metric tracks the movement of previously inactive tokens, and spikes typically suggest the movement of large quantities of dormant tokens. Although ONDO prices are at a significant support point, the absence of this activity is a promising sign.
Price Trend Analysis
The current analysis of the ONDO token presents conflicting signals. Technical charts and indicators like the CMF indicate short-term bearish trends and seller pressure, risking the token losing its critical $0.87 support level. However, on-chain data paints a more optimistic picture. The stability in network growth and active addresses suggests a strong foundation and ongoing user interest. The calmness in the age consumed metric indicates that major investors are not panic-selling and might be in an accumulation phase. Continued purchasing activity by smaller investors further supports this thesis.
In conclusion, despite short-term bearish risks, the ONDO token could present a long-term buying opportunity from a fundamental analysis perspective. Values below 1 in the SOPR suggest that current prices are below average costs, indicating the token might be undervalued. Investors should carefully evaluate these conflicting signals and conduct their own research before taking any positions.
