This Pattern Signals Potential 30% Price Correction for ONDO

Ondo Finance's ONDO token price action has been interesting lately as the token faces downward pressure.

Ondo Finance’s (CRYPTO: ONDO) ONDO token is facing selling pressure, and a key pattern on the ONDO 4-hour price chart is signaling a potential bearish trend reversal.

This pattern suggests that the token may be poised for a sharp decline unless specific support levels are reclaimed.

ONDO Pattern Signals Potential Correction

A classic Head-and-Shoulders formation is observed on the ONDO price chart, highlighted by analyst Ali in a tweet.

This technical pattern comprises three main peaks: the left shoulder, the head, and the right shoulder.

The left shoulder marks an initial moderate price high, followed by the head, which is the highest point on the chart. Finally, the right shoulder shows a smaller peak, indicating weaker bullish momentum.

$ONDO appears to form a head-and-shoulders pattern! A decisive close below $1.48 could trigger a 30% price correction to around $1.05. #ONDO must claim $1.86 as support to invalidate the bearish outlook. pic.twitter.com/81DHsOUB4E

The pattern's defining line is the neckline, which serves as a critical horizontal support level at $1.48.

If the token price shows a breakdown below this level, the implication is a potential price drop of 30%, supporting the bearish outlook.

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 ONDO 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.

ONDO’s Price Action And Market Trends

According to CoinGecko data 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% decrease 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.

Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.

Get all our future calls by joining our FREE Telegram group.

We recommend eToro