With the broader market recovering, the heat in the DeFi segment is back on the rise. Ondo Finance, a real-world asset tokenization project, is hinting at a potential comeback as the broader market recovers.
Sustaining dominance above its $1 psychological mark, Ondo is hinting at a potential double-bottom reversal. Will this reversal rally result in a triangle breakout to reach the $2 psychological mark?
Ondo Price Nears Descending Triangle Breakout
In the daily chart, the Ondo price action reveals a descending triangle pattern. The local support resides at $1.19.
Support demand zone coincides with the 200-day EMA line. On the upper side, the local resistance trendline started after the rejection at the $2.00 psychological mark.
Currently, Ondo price action reveals a potential Morning Star pattern for a bullish comeback. Ondo trades at a market value of $1.2386, with an intraday recovery of 2.23%.
Creating a Morning Star pattern, the DeFi token is negating the 2.59% drop on Tuesday. This hints at a potential comeback to re-challenge the overnight resistance trendline near the $1.35 mark.
Supporting the bullish chances, the lower price rejection from the 200-day EMA line reflects increased demand at lower levels. Furthermore, the daily RSI line shows an early reversal within the nearly oversold region.
However, the uptrend is likely to face opposition near the 100-day EMA line at $1.29 or the 50-day EMA line at $1.3395.
Triangle Breakout Rally Price Targets
In case the broader market recovers, the Ondo token price is likely to break past the local resistance trendline. This will propel the DeFi token towards the critical supply zone near $1.6.
However, the 23.6% Fibonacci level at $1.53 could be an in-between resistance. Based on the Fibonacci levels, the uptrend could result in a bullish comeback towards the 50% Fibonacci level at $1.91.
Beyond this, the 100% Fibonacci level at $2.60 remains an optimistic target, reflecting more than 100% of bullish potential. On the flip side, the crucial support remains the 200-day EMA line at $1.14, followed by the $1 psychological mark.
Ondo Finance Dominates the RWA Market
Supporting the chances of a bullish recovery, a recent report by IntoTheBlock reveals a dominating stand by Ondo Finance. The crypto project is dominating the RWA space by posting the highest transaction volume, outperforming other RWA tokens despite the slow crypto market.
The Ondo Finance transaction volume rises to nearly $300 million, while the second biggest remains Maker (MKR) with less than $100 million in transaction volume.