ONDO is currently navigating a pivotal phase, characterized by strategic supply tightening and a quiet accumulation by long-term holders. Despite remaining within a defined price channel, underlying market dynamics suggest a weakening of bearish pressure and a robust absorption of available supply, setting the stage for potential future shifts.
Strategic Supply Dynamics Unfold
Large-scale ONDO withdrawals from centralized exchanges, totaling over 41 million ONDO to newly created wallets, signal a strong intent for long-term holding rather than immediate rotation of liquidity. These staggered movements indicate planned positioning, effectively reducing the readily available supply on exchanges. This subtle shift in market balance means sellers now require greater conviction to exert sustained pressure, as the easy-to-access tokens are being moved into secure storage. This pattern often precedes periods of price stability or potential upside, as the market prepares for its next directional move.
Price Compression Meets Persistent Demand
While ONDO's price continues to operate within a multi-month descending channel, there are emerging signs of a structural shift. The channel's slope has flattened slightly, indicating a slowdown in downside momentum. Although the upper boundary still acts as resistance and the lower boundary provides support, momentum indicators like the RSI reflect hesitation rather than exhaustion, consistently avoiding sustained oversold conditions. Crucially, taker buyers are demonstrating persistent dominance, consistently lifting offers and absorbing spot sell pressure. This suggests active accumulation, where demand is absorbing supply without necessarily triggering immediate price expansion, a characteristic behavior during late corrective phases.
Bearish Positioning Unwinds, Short Squeeze Potential Builds
Recent market volatility has seen short liquidations significantly outweigh long liquidations, suggesting that bearish positioning had become crowded and has largely unwound. This forced buyback activity helped absorb sell pressure without triggering a broader cascade. Furthermore, the ONDO exchange liquidation map reveals concentrated short exposure stacked above current price levels, particularly between $0.35 and $0.37. This clustering creates an upside vulnerability, as even a modest price push into this zone could trigger rapid short covering, potentially accelerating an upward movement. This imbalance positions short sellers at a greater risk, hinting at a market poised for a directional catalyst. In summary, ONDO appears to be in a phase of quiet preparation, with fundamental metrics pointing towards accumulation and diminishing bearish influence, even as price remains range-bound.
