ONDO rises to the sky but why is it still facing the risk of fall?

Large asset management companies continue to tokenize traditional financial products. Fidelity launched the Fidelity Digital Interest Token (FDIT) on September 10.

FDIT is an on-chain money market fund, secured by US Treasury bonds, primarily from Ondo Finance's short-term US Treasury bond fund (OUSG) as the largest partner and investor.

With this move, Fidelity has joined BlackRock, WisdomTree, and Franklin Templeton in providing money market funds or tokenized treasury funds. Since the launch of OUSG in June 2023, Ondo Finance has been one of the first tokens to provide access to US treasury bonds on-chain.

In the past two days, ONDO has increased by 14.1%, from $0.95 to $1.09. During the same period, Bitcoin rose by 3.3% and Ethereum (ETH) increased by 5.4%, which somewhat explains the bullish sentiment for ONDO.

However, technical analysis shows that this token is approaching a resistance zone, and traders and investors should be cautious of a trend reversal scenario.

The ONDO price fluctuates within a narrow range threatening the bulls

!()https://img-cdn.gateio.im/webp-social/moments-d19e92dd6e0f425303c370d939c4e0d7.webp[ONDO]Price chart of ONDO | Source: TradingViewThe market structure within 1 day is bullish, with the main support and resistance levels marked in orange, at 1.17 and 0.85 dollars, respectively. A price range (white zone) has also been identified. ONDO has been trading within this range since July.

At the time of writing, the price is above an important supply zone since mid-August at $1.08. A further increase of 7% would bring ONDO to the peak of the range. However, it is unclear whether the current rally can reach this peak or not?

The CMF index ( and the Chaikin Money Flow index ) on the daily chart are below -0.05, indicating that money is strongly flowing out of the market. Although the MACD shows bullish momentum, the dominance of the bears has not yet been overturned.

Therefore, ONDO traders should be cautious of the possibility of a trend reversal at the price levels of $1.08 and $1.17.

The sustained buying pressure and high trading volume, along with the breaking of the $1.17 level, will be a strong bullish signal in the coming weeks. However, until then, the price range is likely to remain stable.

Dinh Dinh