Ondo Finance (ONDO) token prices declined 5.44% over the past week after a wallet linked to the project sent 4.019 million tokens, worth approximately $1.4 million, to centralized exchange Coinbase. While the transfer does not confirm a sale, it signals increased near-term supply. ONDO had previously broken out of a bullish triangle pattern but has since fallen back to a key support zone near $0.325. Separately, Ondo Finance submitted a no-action request to the SEC regarding tokenized securities on Ethereum Mainnet. The SEC has not publicly responded. Technical indicators show declining volume and a bearish long-term structure, with price expected to slide toward $0.30 before any potential bounce.
Ondo Finance [ONDO] token prices were down 5.44% over the past week. It was reported that a team-linked wallet sent 4.019 million tokens worth around $1.4 million to the centralized exchange Coinbase.
While the transfer does not confirm a sale, it does signal increased ONDO supply in the near-term, especially given the momentum of the past week. Ondo crypto token prices were back at a key support zone after breaking out of a bullish triangle pattern and climbing to the $0.42 supply zone.
In other news, Ondo Finance announced in a blog post that they submitted a no-action request to the SEC. In a limited set of circumstances, the relevant securities entitlements would also be represented in tokenized form on the Ethereum Mainnet, and held by onchain custodian BitGo to facilitate recordkeeping.
The SEC has not publicly responded to the request. A report towards the end of July warned of a potential bearish turn in ONDO price action due to a lack of steady buying pressure.
Since then, ONDO has slid by close to 24% in value, from $0.427 to $0.325 at the time of writing. Since May, trading volume has declined, and the breakout from the triangle pattern was not accompanied by a surge in buying volume, resulting in the price drawdown.
The 1-day timeframe’s swing structure remained bearish, so long-term bearish expectations persist until ONDO closes a daily session above the $0.47 swing high. The cumulative long leverage below $0.322, down to $0.302, significantly outweighed the cumulative short leverage overhead.
A cluster of high-leverage short liquidations existed around $0.342. However, due to the higher long leverage, it appeared likely that ONDO would fall toward $0.30 before seeing any bounce.
Short-term traders can expect this slide over the next few days. Any price bounce thereafter would depend on incoming capital flows and an uptick in buying pressure.
