ONDO has emerged from a prolonged correction phase with a powerful 37% price surge, reigniting investor interest and signaling a potential shift in market sentiment. After bottoming out near $0.66 in early April, the asset broke out of a long-term descending channel, marking a key technical reversal. This move suggests that the bearish pressure that dominated since its December 2024 peak may finally be subsiding. With momentum building and key indicators aligning, ONDO appears poised for further upside—if it can maintain its current trajectory.
Technical Breakdown: End of the Correction?
ONDO’s price action over recent weeks reflects a classic complex correction pattern known as a W-X-Y-X-Z structure. This multi-phase consolidation concluded at $0.66 on April 7, setting the stage for a reversal. The most significant development came on April 9, when ONDO broke above the upper boundary of a well-defined descending channel that had constrained price movement since its high of $2.13 on December 16, 2024.
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This breakout is more than just a short-term spike—it represents a structural shift in momentum. The descending trendline, once a reliable resistance, has now turned into potential support. A retest of this level confirmed buyer interest, reinforcing the validity of the breakout. Additionally, the price found strong support around $0.73, a zone that aligns with historical demand levels, further strengthening the bullish case.
Currently, ONDO is retesting the 0.786 Fibonacci retracement level near $0.91—a critical juncture for confirming sustained bullish momentum. A close above this level would not only validate the breakout but also open the path toward $1.17, which corresponds to the 0.618 retracement of the entire bearish decline.
Momentum Signals: RSI and Wave Structure
The Relative Strength Index (RSI) on the 4-hour chart shows a steady climb out of oversold territory, currently hovering in neutral-to-bullish range. This indicates growing buying pressure and supports the idea of continued upward movement. While some consolidation may occur before the next leg up, the absence of overbought conditions suggests there’s room for expansion.
Impulse Wave Pattern on 1-Hour Chart
A closer look at the 1-hour timeframe reveals a compelling five-wave impulse structure, suggesting that ONDO may be in the final phase of an upward move.
- Wave (i): Initial push higher from the $0.66 low.
- Wave (ii): Minor pullback to $0.68.
- Wave (iii): Strong rally to $0.89, representing the most extended leg.
- Wave (iv): Consolidation within an ascending channel, indicating healthy profit-taking.
- Wave (v): Likely currently unfolding, with Fibonacci extensions pointing to key resistance zones.
Based on standard Elliott Wave projections:
- 0.618 extension: $0.95
- 0.786 extension: $0.99
- 1.272 extension: $1.08
These levels form a fractal watch zone between $0.995 and $1.09, where traders should monitor for signs of exhaustion or continuation.
For this bullish scenario to remain valid, ONDO must hold above $0.837—the critical invalidation level. A break below this point would suggest wave (v) has failed and could lead to renewed downside pressure toward prior support zones.
Key Levels to Monitor
Understanding pivotal price points is essential for navigating ONDO’s next phase:
Major Support:
- $0.68 – Low of wave (ii), crucial for maintaining bullish structure
- $0.730 – Historical demand zone and psychological support
Immediate Resistance:
- $0.916 – 0.786 Fibonacci retracement level; breakout confirmation threshold
Breakout Confirmation:
- Sustained close above $0.916 signals strong buyer conviction
Invalidation Level:
- Below $0.837 negates the current impulse count and favors bearish resumption
Fractal Watch Zone:
- $0.995–$1.09 – Final target range for wave (v), based on Fibonacci extensions
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Frequently Asked Questions
Q: What caused ONDO’s recent price surge?
A: The 37% rally was triggered by a breakout from a long-term descending channel, combined with strong support at $0.66 and renewed buying momentum. Technical indicators like RSI and wave structure suggest the move is part of a broader bullish reversal.
Q: Is ONDO still in a downtrend?
A: No—ONDO has likely exited its downtrend after breaking above the descending channel resistance. While resistance remains at $0.916, the overall structure now favors upside if key support levels hold.
Q: What are the next major price targets for ONDO?
A: If momentum continues, ONDO could target $0.95 initially, followed by $0.99 and potentially $1.08. A sustained move above $0.916 could extend gains toward $1.17 over time.
Q: How reliable is the five-wave impulse pattern?
A: The pattern on the 1-hour chart aligns well with Elliott Wave principles and is supported by volume and RSI behavior. However, all technical models carry risk—traders should use stop-losses and confirm with multiple indicators.
Q: What would invalidate the current bullish outlook?
A: A drop below $0.837 would break the wave (iv) low and invalidate the impulse count, suggesting the uptrend has failed and a deeper correction may follow.
Q: Can ONDO reach its previous highs?
A: While $2.13 remains distant, recovery to $1.17—a 61.8% retracement of the bear move—is feasible in the medium term if bullish momentum sustains and broader market conditions remain favorable.
Final Outlook: Bullish Reversal in Motion?
The combination of structural breakout, supportive momentum indicators, and a clear wave pattern suggests ONDO’s correction phase has concluded. The asset is now testing key resistance at $0.916, with a confirmed close above this level likely triggering further inflows.
While short-term volatility remains possible, the path of least resistance appears upward—provided support at $0.837 holds firm. Traders and investors should watch both price action and volume behavior at critical junctures to assess continuation potential.
As always, risk management remains paramount. Market conditions can shift rapidly, especially in crypto markets where sentiment plays a major role. Using tools like stop-loss orders, position sizing, and multi-timeframe analysis can help protect capital while participating in potential upside.
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.