ONDO Faces Triangle Breakdown: Drop to $0.92 Next?

As Bitcoin dominance hits 60%, the altcoins are on a declining path. Among the altcoins, DeFi tokens like ONDO and Chainlink are at critical support levels.

Currently, ONDO tests a critical demand zone in confluence with the 200-day EMA line. Will the bullish dominance at this critical level sustain a bounceback, or is a drop under $1 inevitable?

ONDO Price Analysis: Triangle Breakdown or Reversal?

In the daily chart, the ONDO price trend took a declining path in late December. The DeFi token price is now down at $1.18 after facing a bullish failure to cross the $2 cyclonic milestone.

This accounts for a price drop of 42% over the past two months. During the pullback, the DeFi token price trend has created a descending triangle pattern. This is a bearish continuation pattern that often results in a breakdown.

The lower support of the triangle remains at the $1.19 demand zone. Furthermore, the 200-day EMA line is approaching the demand zone to add additional support. Thus, making this an important price level for both bulls and bears.

Currently, the ONDO price trend creates its sixth consecutive bearish candle, increasing the chances of a breakdown rally. Adding to the bearish theme, the declining RSI trend undermines the previous divergence and is approaching the oversold region.

This signals that selling pressure remains dominant, weakening the chances of an immediate recovery. Hence, the technical indicator warns of a breakdown rally.

In case of a breakdown rally, the ONDO price is likely to test the crucial support levels near the $1 psychological mark and the $0.92 level.

Bullish Case: Can ONDO Hit A New ATH?

On the bullish front, a reversal attempt will likely challenge the overhead trendline near $1.37. A strong bounce from the 200-day EMA could trigger a short-term recovery, but overall sentiment remains bearish unless it reclaims key resistance levels.

Supporting the chances of a bullish comeback, Ted Pillows, a crypto analyst, anticipates a double-bottom reversal. This bullish turnaround is based on the fact that Donald Trump’s World Liberty Finance holds ONDO as the only real-world asset project.

Furthermore, ONDO has also partnered with BlackRock’s BUIDL project, strengthening its fundamental support. These factors highlight the growing adoption and underlying potential.

However, the price action needs to confirm a strong reversal before bulls can regain confidence. As per the tweet, the analyst anticipates a dip towards $1.15 or $1.20, followed by a reversal towards a new all-time high.