ONDO's double-digit gains are meeting stiff resistance, as on-chain data reveals a high-stakes battle between leveraged traders and large-scale liquidations.
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ONDO Jumps 10% But Stalls at $0.40 as Traders Eye Whale Games
The ONDO token surged over 10 percent on Saturday, but the rally met immediate friction around the $0.40 resistance level, leaving traders to question the rally's strength amid signs of weak spot market demand and heavy derivatives action.
"ONDO is seeing massive liquidation spikes as volatility returns," Whale Factor, an on-chain analysis account, said in a post on X, highlighting forced closures of both bullish and bearish leveraged positions around key price zones.
The sharp price move followed a period of intense volatility. First, a wave of long liquidations pushed ONDO toward its $0.30 support zone. This was followed by a recovery that triggered short liquidations as the price climbed back toward the $0.40 resistance, a classic "shakeout" pattern often attributed to large holders, or "whales," accumulating positions. Technical analysts also noted the formation of a bullish inverse head and shoulders pattern, though it awaits confirmation with a decisive break above the current resistance.
The battle at the $0.40 level is critical because it will likely determine if ONDO can build on its fundamental narrative as a leader in the tokenization of Real World Assets (RWAs). A failure to break higher could see the token fall back into its recent range, while a successful breakout could validate its recent integration with MetaMask and attract further investment into the burgeoning RWA sector, which has grown to over $22 billion in total value locked.
Beyond the Chart: A Bet on Real World Assets
The intense focus on ONDO's price chart masks a deeper narrative that has drawn institutional interest. The project's parent, Ondo Finance, is a key player in the tokenization of RWAs, recently integrating with MetaMask to allow eligible users to trade tokenized versions of US stocks and ETFs directly from their wallets. This move, which includes assets like NVIDIA and Apple, places Ondo at the forefront of bridging traditional financial assets with decentralized finance infrastructure. The firm had previously launched OUSG, a tokenized BlackRock US Treasuries product, and was involved in a cross-border tokenized Treasury redemption with JPMorgan and Ripple.
Regulatory Headwinds Define Market Access
However, access to this new financial rail is highly restricted. The tokenized securities are offered via a British Virgin Islands entity and are not registered under the US Securities Act of 1933. Consequently, the product is explicitly unavailable to residents of the United States, the European Economic Area, the United Kingdom, Canada, and over 30 other jurisdictions. This geofencing highlights the significant regulatory compliance hurdles that RWA platforms must navigate, limiting the immediate addressable market for one of Ondo's flagship products.
For investors, the current price action represents a tug-of-war between a promising, but heavily regulated, fundamental story and a speculative, derivatives-driven market. While the MetaMask integration provides a glimpse into a future where DeFi and TradFi merge, the technical and regulatory barriers are proving to be significant short-term hurdles, making the $0.40 price level a key barometer of market conviction.
This article is for informational purposes only and does not constitute investment advice.
[1] ONDO Jumps 10% But Weak Spot Demand Keeps Traders Nervous Around $0.40[2] MetaMask Just Added Tokenized US Stocks – NOT for US Users[3] Here’s why Near Protocol, Ondo, and Hyperliquid crypto tokens are rising[4] ONDO Volatility Returns As Traders Watch $0.4000 Breakout Signal[5] Ondo Price Analysis: Short and Long Wipeouts Flag a Showdown at $0.40
