Large token unlock leads to price increase instead of drop—Is ONDO in the RWA sector worth buying?

Ondo Finance is a decentralized financial protocol dedicated to providing financial products and services to institutions using blockchain technology, creating an open, permissionless investment banking platform. Currently, the Ondo website shows support for the US government bond fund product (OUSG), the US money market fund product (OMMF), and the USDY token, which is supported by short-term US Treasury bonds and bank demand deposits. The goal of Ondo Finance is to introduce low-risk, interest-bearing assets (such as US Treasury bonds and money market funds) to the blockchain, providing investors with an alternative to stablecoins while ensuring that investors can benefit from most of the underlying assets.

Ondo Finance was founded in 2021, initially focusing on the DeFi field. With the decline in DeFi yields, Ondo underwent product transformation in 2023, phasing out the original Vaults and LaaS, and instead focusing on developing the next generation protocols and launching tokenized financial products including USDY and OUSG, officially transitioning to the RWA track.

According to the token performance chart data on the Gate.io market page, in the past year, ONDO is the second best-performing token in the RWA sector, with a cumulative increase of over 500%. Previously, at 8 a.m. on January 18th, Beijing time, approximately 1.94 billion ONDO tokens were unlocked by ONDO Finance, which were worth approximately 2.42 billion US dollars at that time. After the large-scale unlocking of ONDO tokens, the price remained strong, rising by over 20% at one point. The current circulating market value of ONDO is 4.4 billion US dollars, ranking 33rd in the overall market.

ONDO Token Market Analysis

Trading Data

• Current price: 1.39932 USDT
• 24-hour rise: 9.65%
• 24-hour high price: 1.40713 USDT
• 24-hour low: 1.25 USDT
• 24-hour trading volume: 40,576,724 ONDO
• Market Sentiment: Extreme Greed (Fear & Greed Index: 75)

Support and resistance levels

• Support level: 1.2729 USDT
• Resistance Level: 1.3837 USDT

Trading strategy advice

Strategy 1: Short-term bullish strategy

• Direction: Bullish
• Entry Price: 1.40 USDT
• Stop loss: 1.35 USDT
• Target Price: 1.45 USDT
• Reason: The current market sentiment is extremely greedy, indicating that investors have a strong expectation of price rise. ONDO price has broken through the resistance level of 1.3837 USDT and may continue to rise, with a significant trading volume in the past 24 hours, indicating market activity.
• Strategy features: Suitable for short-term traders, using market sentiment and technical breakthroughs to quickly profit, with a stop loss set at 1.35 USDT to control risk.

Strategy 2: Buy on Pullback Strategy

• Direction: Bullish
• Entry price: 1.28 USDT (near the support level)
• Stop loss: 1.25 USDT
• Target price: 1.40 USDT
• Reason: The current price is close to the support level of 1.2729 USDT, and a rebound may occur. If the price falls back to the support level, it may attract buying interest and trigger a rebound. Considering the fundamentals, the long-term potential of the ONDO project is worth paying attention to.
• Strategy features: Suitable for medium to long-term investors, utilizing market pullbacks for positioning. Stop loss set at 1.25 USDT to prevent further falls.

Outlook for the future

The future prospects of ONDO token are full of potential. As the native token of Ondo Finance platform, ONDO is catering to the major trend of integrating blockchain with traditional finance. Over the past year, ONDO has performed remarkably well, becoming the second best-performing token in the RWA sector with a cumulative increase of over 500%, indicating market confidence in its future.

From the market performance perspective, the ONDO token has remained strong after unlocking, and recent trading data indicates that the market sentiment is showing an ‘extreme greed’ state, further reflecting investors’ strong expectations for its rise. Despite significant market fluctuations, ONDO, with its underlying support of decentralized finance protocols and stable growth potential, is expected to continue to attract more investors in the future. With the continuous expansion of platform products and the evolution of the DeFi field, ONDO may become an important asset in the realm of Real World Asset (RWA) tokenization, possessing long-term investment value.