Ondo is the second largest RWA issuer onchain, and its token just dropped 25% in three weeks.
One of those two facts is mispriced, and the chart is about to show which.
Ondo distributed RWA value:
$4.0B
Breakout wick high:
$0.61
Price now:
$0.455
From July to September, $ONDO was trapped under $0.42 to $0.43. Every rally into that zone got sold.
Late September, it finally broke through, and that old ceiling is now the floor being tested.
Twice this month, sellers pushed price into $0.42. Twice buyers closed it back above $0.44.
The problem is overhead. Since the $0.61 top, every bounce has peaked lower, first at $0.53 and then near $0.48.
Momentum agrees for now. Daily MACD sits under its signal line, and daily RSI near 47 has slipped below its average.
The business keeps growing while the chart retests.
Resistance to reclaim:
$0.50
A daily close above it breaks the lower high pattern and puts $0.53, then $0.61, back on the table.
Support to defend:
$0.42
Lose it, and price falls back into the old range, with $0.35 as the next real floor.
That is the entire trade.
Textbook retest, or failed breakout?
Breakouts that hold their retest become trends.
Breakouts that lose it become lessons, and $0.42 decides which one this is.
One of those two facts is mispriced, and the chart is about to show which.
Ondo distributed RWA value:
$4.0B
Breakout wick high:
$0.61
Price now:
$0.455
From July to September, $ONDO was trapped under $0.42 to $0.43. Every rally into that zone got sold.
Late September, it finally broke through, and that old ceiling is now the floor being tested.
Twice this month, sellers pushed price into $0.42. Twice buyers closed it back above $0.44.
The problem is overhead. Since the $0.61 top, every bounce has peaked lower, first at $0.53 and then near $0.48.
Momentum agrees for now. Daily MACD sits under its signal line, and daily RSI near 47 has slipped below its average.
The business keeps growing while the chart retests.
Resistance to reclaim:
$0.50
A daily close above it breaks the lower high pattern and puts $0.53, then $0.61, back on the table.
Support to defend:
$0.42
Lose it, and price falls back into the old range, with $0.35 as the next real floor.
That is the entire trade.
Textbook retest, or failed breakout?
Breakouts that hold their retest become trends.
Breakouts that lose it become lessons, and $0.42 decides which one this is.